Query
Sayantan Datta (Article Clerk) (63 Points)
17 December 2013
What kind of A/c is Net Profit a/c ?????
Thanks in advance
Ashwini Kumar Rohilla
(M.Com and CA-FINAL)
(949 Points)
Replied 17 December 2013
Ramkrishna Mokashi
(Chartered Accountant)
(734 Points)
Replied 17 December 2013
Depends on the System being used.
For Example:- Few of the old systems had two Net Profit A/cs (possibly latest as well). One would go in P&L A/c and One in B/S (in Reserves & Surplus).
When the year was over, accountant would pass an entry debiting Net Profit (P&L A/c) and Crediting Net Profit (B/S A/c). The amount would be for the Net Profit for the year. This would make the balance in P&L ZERO, and move it to B/S. The B/S GLs would then get carried forwarded to Next Year's Opening Balance.
If you are auditing and want to find out what this GL is for, go through the entries and analyse what it's doing.
Sayantan Datta
(Article Clerk)
(63 Points)
Replied 17 December 2013
deepak sangwan
(article assistant)
(158 Points)
Replied 18 December 2013
hemlata namdeo biranje
(Proprietor)
(24 Points)
Replied 18 December 2013
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 18 December 2013
Profit & Loss a/c is a nominal account.
rajan sharma
(account)
(22 Points)
Replied 18 December 2013
| Originally posted by : Sayantan Datta | ||
 |
I am asking whether it is real or personal account or nominal account ?? |  |
PERSONAL A/C , REAL A/C , NOMINAL A/C , VALUATION A/C
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