Pharma Ltd is engaged in the manufacturing of low cost generic medicines. Its management and employees are hardworking and motivated. The net profit of the company increased during the year ended 31st March 2020. Encouraged by its performance, the company decided to pay bonus to all employees at a higher rate.
Following is the Statement of Profit & Loss for the year ended 31st March 2020
Statement of Profit & Loss for the year ended 31st March 2020
Answer the following questions :
1. Under which head the Profit on sale of asset will be shown in the Statement of Profit & Loss as per Companies Act 2013?
a) Revenue from Operation
b) Other income
c) Finance cost
d) Other expenses
2. Employee Benefit expenses does not include which of the following/
a) Wages
b) Conveyance expenses
c) Salaries
d) Bonus
3. Finance cost includes which of the following?
a) Discount on issue of debentures & premium payable on redemption of debentures
b) Interest received on fixed deposits
c) Bank charges
d) Repayment of loan
4. Under which schedule of Companies Act 2013, the Statement of Profit & Loss is prepared?
a) Schedule III Part I Of Companies Act 2013
b) Schedule VI of Companies Act 2013
c) Schedule III Part II of Companies Act 2013
d) Section 52 of Companies Act 2013.
