Through the statement of Profit & Loss account we ascertained either "PROFIT" or "LOSS" and not ascertain both at a same time. Then why should we call as " PROFIT AND LOSS A/c instead of " PROFIT OR LOSS A/c ?
15 July 2007
"and" here connots that either profit or loss can be derrived from this statement.
This is important to indicate that for looking into the results, this is an unique statement. As business is uncertain, may be in one year you have to name as "Loss Account" another year a "Profit Account". Profit & Loss account means an unique statement which reflects the results whether Profit or Loss.
Literal interpretation would not be applied in this case.
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