Accounts for individual professionals

699 views 3 replies

Is a P&L Account or Income and Expenditure acccount prepared for an individual professional? Please give resons for the answers!!!!!!!

Replies (3)

Yes sure, why not. just keep in mind the separate entity concept. That means keep the personal transactions out of the books, except those via a vis the profession, such as drawings or investments. It's good to have fin stat prepared for individual irrespective of business and prof.

P/L A/c is prepared by Traders/Manufacturers. Profit & Loss A/c is maintained by someone whose main business is to earn profits which is done by selling goods and adjusting purchase cost and other expenses necessarily incurred for selling goods or promoting to sale goods. On the other hand, Income & Expenditure A/c is maintained by the persons who are engaged in profession and whose main motive is to give advise or consultancy to others. Their primary objective is the welfare of society. The income earned by such professionals(doctors, CAs, Teachers, Lawyers etc.) is usually called 'fees' and not profit. They are not involved in purchasing & selling of goods.

Yes it will be maintained because see in income tax act one of the head is income from busines or profession. Even profession have to go under audit and also its a prudance to keep books of account

 

If your question is which accout to maintain that is wether incomeand ependiture or p and l then it is income and expeniture.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details