Followings are the items which are included in the debit side of profit and loss account.
1. Gross Loss
Gross loss is the debit balance of trading account which transferred to the profit and loss account.
Expenses incurred for the promotion of sales and distribution of sold goods are selling and distribution expenses. Packing charge, carriage , freight outward, sales tax, forwarding charge , export duty , travelling expenses etc are the examples of selling and distribution expenses.
Administrative expenses are those expenses which are incurred for day to day running of office management.
Gross loss is the debit balance of trading account which transferred to the profit and loss account.
2. Selling and distribution expenses
Expenses incurred for the promotion of sales and distribution of sold goods are selling and distribution expenses. Packing charge, carriage , freight outward, sales tax, forwarding charge , export duty , travelling expenses etc are the examples of selling and distribution expenses.
3.Administrative Expenses
Administrative expenses are those expenses which are incurred for day to day running of office management.
4. Financial Expenses
Financial Expenses are incurred for arranging fund to run the business. Cash discount allowed, interest on capital, interest on loan discount on bill etc. are the examples of financial expenses. These expenses are recorded in the debit side while preparing profit and loss account.
5. Maintenance Expenses
Expenses incurred for maintaining the fixed assets are called fixed expenses. Repair and renewable depreciation of assets are some examples of maintenance expenses.
6. Abnormal Losses
Abnormal losses are those losses which are incurred due to the carelessness of the management. Loss on sale of asset , stock lost by fire etc are the examples of abnormal losses. All abnormal losses are appeared in the debit side of P & L Account.