Why profit and loss A/C instead profit or loss A/c
This query is : Resolved
A J Sankar
(Querist)
10 November 2008
Why do we call it as Profit and loss A/c ?Because it shows either profit or loss only. Can't we call it as Profit or loss Account?
CA. AmirSavant
(Expert)
10 November 2008
Profit and Loss A/c gives us a net effect of all the profits earned and losses incurred in a year. The word "and " denotes the fact that it consists of series of profits as well as losses before we arrive at a net profit or net loss. Therefore, it is incorrect to call it Profir or loss a/c since its is composition of both the elements.
A J Sankar
(Querist)
11 November 2008
Thank Q sir
But it also shows incomes and expenses.
Then why should we not call it as income and expenses account.
In fact every profit can be call as part of income(as excess income over exp) but not every income as profit.
But it also shows incomes and expenses.
Then why should we not call it as income and expenses account.
In fact every profit can be call as part of income(as excess income over exp) but not every income as profit.
S.Srinivasaraghavan
(Expert)
11 November 2008
A rose is rose, by whatever name you call it as long as you understand it as 'rose'!
A J Sankar
(Querist)
11 November 2008
Sorry it seems that i am unnecessarily over thinking.
Ok Thank q Sir.
Ok Thank q Sir.
S.Srinivasaraghavan
(Expert)
11 November 2008
NO.No. Carry on! It may give some scopr for lighter momemnts!!
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