dear members,
i have this doubt long pending to be resolved,
whether "profit & loss account" is Correct OR
"profit/loss account" which means "profit or loss account" is correct
my view is in such an account, if there is profit there will not be loss and vice versa. So, it is surely, Profit/Loss account In Schedules to Companies act also it is mentioned as "profit and loss account" only.
Please clarify
Thanks in advance
Well, "profit and loss account" is correct. I know there can't be profit and loss at the same time, but that's how the account is called (probably because the account is equipped to show both a profit and a loss, although not at the same time).
/forum/schedule-vi-of-companies-act-90772.asp
PLZ GO TO THE ABOVE FORUM WHICH CONTAIN SCH VI
IN WHICH PART II CLEARLY MENTION PROFIT AND LOSS ACCOUNT
| Originally posted by : Siddarth R Sunder Ram | ||
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Well, "profit and loss account" is correct. I know there can't be profit and loss at the same time, but that's how the account is called (probably because the account is equipped to show both a profit and a loss, although not at the same time). |
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Dear Friends
Profit and Loss can be together in a same company at the same time period
You can see easily Company is earning Financially Profit but not paying tax because of Loss
Income as per Income Tax Act, 1956 but loss as per Companies Act, 1956
So Company earn but dont pay Tax
Reliance was doing the same at starting. due to cover this loss from all companies MAT was introduced.
Regards
| Originally posted by : RADHEKRISHNA0001 | ||
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Originally posted by : Siddarth R Sunder Ram Well, "profit and loss account" is correct. I know there can't be profit and loss at the same time, but that's how the account is called (probably because the account is equipped to show both a profit and a loss, although not at the same time). |
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Hai
In general we say there wont be pofit and loss at the same time.
But for example firm can get profit(revenue) by selling a fixed asset and due to bussiness operations it may get loss.
so u can find a situation where firm incurrs loss and gain profit at the same time.
Thats the reason for calling it as Profit & Loss account.
AGREE WITH SUPRIYA.........
profit includes loss also ...........loss is just a negative profit.so its not wrong to call the accounts as profit and loss account. more over any loss or profit from sale of any fixed assets are also included in this acoount so its more apt to call it profit and loss account
CAclubindia
