25 November 2011
It is called profit & loss account because of the reason that it is an account statement to make out whether the organisation is incurring losses or is going into profits. The net effect of the statement is obviously profit or loss but the items of both the income which can go up to make profit AND the items of expenses which go up to make losses are included in it.Had it been including only the income items or expense items only then it might have been called PROFIT OR LOSS Account. CA. RICHI SAXENA
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