What do we say if the owner asks where the profit in the profit and lost account really is?
What do we say if the owner asks where the profit in the profit and lost account really is?
Simple, compare last years stamens with this year.
Find out if sales increased
find out if the expenses decreased
find out of finance costs decreased.
Like that, compare the statement and find out what increased and what decreased. That increased your profits.
Analyse Cashflows as well.
simply can show profit and loss account balance credit balance shows as Net Profit.
The credit balance is itself net profit in profit & loss account in final accounts.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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