Is p/l a/c an account?

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Vikas Gupta (Querist)
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11 September 2012 Hi! Is Profit and Loss A/c an account. If it's a statement and not an account, why the word 'A/c' is put after it? Also, I've heard that P/L A/c is also called trading a/c. Is it correct? In my view trading a/c is a part of profit and losss a/c.

CA Ilayaraja

CA Ilayaraja (Expert)
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11 September 2012 Dear Vikas,
Profit and loss a/c is merely a statement and not ac a/c.
To remove this ambiguity the new schedule VI has changed the name As Statement of Profit and Loss...

Vikas Gupta

Vikas Gupta (Querist)
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12 September 2012 Thanx sir!
But was everybody doing wrong if he/she wrote it as profit and loss a/c and not the statement of profit & loss before the amendment in schedule VI.

Also, please tell me whether it is correct to say trading a/c to profit and loss a/c?

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