Which of the following is found on the credit side of a profit and loss account?

Which of the following is found on the credit side of a profit and loss account?

  1. advertising
  2. bank charges
  3. dividend received ✓
  4. wages and salaries

Explanation

Profit and loss account shows income on the credit side and expenses on the debit side. Dividend received is income from investments, so it goes on credit side.

Advertising, bank charges, and wages are all expenses. Expenses always appear on the debit side because they reduce profit.

Remember: Credit side = income and gains. Debit side = expenses and losses.