a profit and loss account can have either profit or loss balance after calculation but not both.
but why it is called profit and loss account not profit or loss account?,
please explain ?
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please answer this before 4 pm
A statement which gives “net effect” of all the profits earned and losses incurred during the year, is called Profit And Loss (accounted) account.
The word "and" denotes that it consists of items of profits (income) as well as losses (expenditure) before we arrive at net profit or net loss. Therefore, it is called Profit and Loss A/c and not Profit or Loss A/c.
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