Statement 1:
"Trading Account is like a statement which is divided in two parts i.e. Income part and Expenditure Part."
Statement 2: "Income and Expenditure A/c is same as P&L A/c."
So this means :
Trading A/c = I&E A/c = P&L A/c.
Is this true?? I mean, Do all 3 have the same meaning..?
It is true. But the terminology uses depends upon the nature of the business. Example: Trading a/c used in case of manufacturers, Income & expenditure a/c is used in non-profit organisations, whereas Profit& Loss a/c is used purely profit oriented businesses.
O P Bagla & Co LLP
New Delhi
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SKAA & Associates
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