After preparing Trading A/c then we will prepare P&L A/c as 
well as P & L Appropriation A/c. After preparing Trading 
A/c the Gross profit or Gross loss should be shown in 
Tranding A/c. If Gross Profit is there the profit should be 
carried farward of the P&L A/c on credit side. or If the 
Gross Loss should be shown carried farword that Gross Loss 
on the Debit side of P & L A/c. and next all indirect 
expenses must be add on the debit side of P&L A/c ex:-
(salaries,rent, wages,VAT tax,Bad Debts,Electricity Bill, 
Telephone Bill, Mobile or cell phone bill,printing & 
stationery, postage & telegrams,Discount 
allowed,Depriciations etc). and any Discount received, 
Commission Received should take on the credit side of the P 
& L A/c. and then calculate all Debits & Credits 
total.After calculating the Credit Balance is more than the 
Debit Balance the remaining balance is Net Profit.as the 
same way the Debit Balance is more than the Credit Balance 
that amount is Net Loss. This is complete Profit  & Loss A/c

from the Trial Balance we can prepare profit & Loss A/c

In a simple way to say wt is meant my profit & loss account 
is .debit side (all office expenses like salaries, rent, 
electricity etc) and on credit side( the gross profit and 
commission recvd and discount recvd ).

INCOME. £ 

Sales 23850


EXPENDITURE.

Selling Expenses .1800.
Bank Interest .450.
Purchases .12000.
Wages & Salaries .1500.
Rent & Rates .450. 
Telephone .600.
ESB .525.
Insurance .525.
_____.

Total expenditure .17850.

Net Profit .6000.


Balance Seet as at ?. 

Fixed Assets:-. £

Land & Buildings .8400.
Plant & Machinery .3450.
Motor Vehicles .450.
Total Fixed Assets .12300.

Curent Assets.
Debtors .3000.
Bank & Cash .2700.
Total current assets .5700.

Less current Liabs.
Creditors .1200.

Net current assets .4500.

Total Assets .16800.
_____.

Liabilities.

Long term loan .1800.
Share Capital a/c .3000.
Share Premium A/c .1500.
P&L a/c b/f 4500.
Plus Profit 6000 .10500.


Total Liabilities .16800.


When you post the answer, it throws the alignment of the 
figures out. They should all be under each other directly 
under the pound sign, all of which should be further to the 
right, away from the account descriptions. It is a very 
simple P&L a/c and Balance Sheet format. You should be able 
to present it with all the figures under each other. 
Ideally, you need a spread sheet for that, unless you are 
going to present it in hand written form. Total assets 
balance total liabilities at £16800. Profit for the year is 
£6000 from the P&L a/c, which is transferred to the balance 
sheet and added to accumulated profits from the previous 
years.

Follow the procedure as I Say
First of all we have to Post journal entries, 
then from journal we have to post these entries in there 
respective ledgers.
then from ledgers make Trial Balance
Feom trail Balance we will be able to make Trading Account 
and P&L Account. Other than factory income & factory 
expenses all entries should be posted in the P & L account.

trading a/c is the statement which shows the gross profit 
or gross loss of a particular company or a firm at the end 
of the year.in the p&l a/c statement we will enter all 
indirect expenses on the debit side, and all indirect 
incomes on the credit side.from this statement we will come 
to know the net profit or net loss of a company or afirm.

After complition of Trading A/c. The Gross profit will 
transfer to P/L A/c or carry forward to P/L A/c. If there 
is Gross profit it goes to right hand side of P/L A/c or if 
there is Gross loss then the loss goes to left hand side of 
P/L A/c.P/L A/c has two side, one is Expenses side & other 
is Income Side. Expenses Side :- Salary, Electricity bill, 
stationery exp, Printing exp.,Carriage outward, Bad debts & 
all indirect expenses & Income side :- Commission received, 
Interest received,Bad debts recovered etc. After complition 
of entries, if income is higher than expenses it should 
write Net Profit or if Income is less than expenses it 
should  Net loss.