What do we say if the owner asks where the profit in the profit and lost account really is?
Pradeep Kumar (7 Points)
20 June 2021What do we say if the owner asks where the profit in the profit and lost account really is?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 20 June 2021
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.
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 20 June 2021
Muhammed Ibrahim Badusha
(64 Points)
Replied 20 June 2021
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 24 July 2021
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 24 July 2021
simply can show profit and loss account balance credit balance shows as Net Profit.
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 31 July 2021
Nidhi
(Chief Accountant)
(3150 Points)
Replied 31 July 2021
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 01 August 2021
The credit balance is itself net profit in profit & loss account in final accounts.
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