In manufacturing accounts, finance expenses are charged to the
Answer Details
In manufacturing accounts, finance expenses are charged to the profit and loss account. The profit and loss account is a financial statement that shows a company's revenues, costs, and expenses during a specific period of time, such as a year. Finance expenses are a type of expense that a company incurs to finance its operations, such as interest paid on loans or overdrafts. These expenses are subtracted from the company's revenues to determine its net income or loss. Therefore, finance expenses are included in the profit and loss account as they directly affect the company's profitability.