profit AND loss

Now I think there are lot many issues on which we should discuss. The AND now should come to AN END.

Originally posted by : Sneha
 

profit and loss a/c statement actually records all expenses and incomes whether direct or indirect earned(in case of incomes and gains) and incurred(in case of expenses and losses) throughout the year...and after all this adjustments the final balance is either positive or negative...the positive one is called profit and negative one is loss....so in my opinion(if u want to take) thats why we write profit and loss a/c

thank you

 


 

Thanks to all for replying  and appreiciation

@ yuvraj ofcourse everybody's opinion are welcome  

all income/profits are credited in profit and loss a/c and all expenses/losses are debited in profit and loss a/c so the word profit and loss a/c is used.

profit or loss is not be used because the word profit or loss is to be used for the ultimate result of profit and loss a/c.

the ultimate result is profit or loss

but all income/profits and all losses/expenes are taken in this statement.

 

Simply Profit & Loss A/c indicates posting of both profit &loss. The result which we get is Profit OR Loss.

We get the in come by sales and we deduct the expenditure incured

as the incone we got fron sales is treated as profit and the expenses we incured are loss

We are posting both the profits from sales and the loss of money due to expenses IT IS TERMED AS PROFIT AND LOSS A/c

To add something more :

 

There are various sources of income which are included in the Profit and Loss Account.

 

Although business is run to earn profits still there may be Loss from sale of Fixed Assets and Profit from sale of Shares.  To know the net profit of the business; both the  items are ultimately transferred to one place i.e. Profit and Loss A/c. 

 

 

That is why both words are used. 

HIIIII SNEHA

REALLY INTRESTING ONE U POSTED ON FORUM

IN MY VIEW

IT IS A LIFETIME A/C OF THE ENTITY HENCE IT IS CARRY FORWARDED EVERY YEAR) , ITS NOT A ONE YEAR A/C ( MEANS CLOSABLE A/C LIKE: SALES .PURCHASE,EXPENCES,ETC),  WE MAY FIND (1) THAT IT IS SHOWING CREDIT BALANCE IN ONE YEAR, & ANOTHER YEAR IT IS SHOWING DEBIT BALANCE

(2) THERE IS MAY BE LOSS IN A PARTICULAR YEAR. BUT DUE TO HUGE PAST YEARS PROFITS ITS CLOSING BALANCE MAY BE SHOW CREDIT BALANCE

DUE TO BOTH LOGIC I CAN SAY IT IS FAIR TO SAY AS PROFIT AND LOSS A/C

IF ITS A ONE YEAR A/C THEN I THINK I BETTER TO SAY PROFIT  OR LOSS A/C 

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