Doubt Profit and Loss account

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

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

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