9. r26 Dr. / Abnormal Gains There may be capital gains arising during the course of the year, e.g, profit arising out of sale of a fixed asset. Such profit is shown as a separate income on the credit side of the Profit and Loss Account. 6.4.2 Closing entries for Profit and Loss account f) For transfer of various expenses to Profit & Loss A/c Profit and Loss A/c To Various Expenses A/C (Being various indirect expenses transferred to Profit and Loss Account) (ii) For transfer of various incomes and gains to Profit & Loss A/C Various Incomes & Gains Dr. To Profit & Loss A/C (Being various incomes & gains transferred to profit and Loss Account) iii) fal For Net Profit Profit & Loss A/C Dr. To Capital A/C (Being Net Profit transferred to capital) (b) For Net Loss Capital A/C Dr To Profit & Loss A/C (Being Net Loss transferred to Capital Account) Illustration : From the following balances extracted at the close of year ended 31 March, 2006, prepare Profit and Loss Account as at that date: Rs. Gross Profit 51,000 Discount (Dr.) Carriage Outward 2,500 Apprentice Premium (Cr.) 1,500 Rs. 500 250 350 Salaries Rent Fire Insurance Premium Bad Debts Commission Received 5,500 Printing & Stationary 1,100 Rates & Taxes 900 Travelling Expenses 2,100 Sundry Trade Expenses 1,000 Discount allowed by Creditors 200 300 800