Explain the items on the credit side of Trading and Profit and loss account.
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
Items on the credit side of Trading and Profit and loss account:
- Sales less return:- Sales account in trial balance shows gross total sales (cash as well as credit) made during the year. It is shown on the credit side of the trading account. Goods returned by customers are called return inwards and are deducted from total sales.
- Other incomes: Beside salaries and other gains and incomes are also recorded in the P&L account.
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