why is it called profit and loss account why not profit or
loss account, ( u either get profit or loss )
- 13 Answers
- 32766 Views
- Genpact, Symbiosis, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / arthi
There are two reasons: One is that you will not be aware initially how your operations would end, at the close of the year. It may either be profit or loss.
Another one would be it may be a profit in one year and loss in another year.
Further, the profit or loss is know only at the year end. But, in the course of the accounting year, when the account is drawn up say monthly, quarterly or half yearly, the results may either be profit or loss and the resultant profit or loss is only at the end of the year.
| Is This Answer Correct ? | 2 Yes | 10 No |
Answer / aditya bhushan
Because in profit and loss account we show both profit and loss on one statement for calculating net profit and net loss ,as we all know that net profit is different between debit and credit side of profit and loss account.
so that we use to say it profit and loss account not profit and loss account
| Is This Answer Correct ? | 2 Yes | 15 No |
Answer / dayakar
As it shows profits/gains at credit side as well as expenses
or losses at debit side
| Is This Answer Correct ? | 11 Yes | 28 No |
Expand---------PRTS
f your account is debited instead of credit, then what do you do? How do you correct your account?
Pass Journal Entry for the following Mr.A is running Furniture Business. He bought 10 chairs at Rs.1000 each. He used one chair for his personal use.
What is the full form of EDLI?(related to EPF...)
4 Answers AL Paper House, GIL,
what is vlsm?
where can i find the free basic tutorial for tally9.1
give the details of overheads which are not included in costing
Expand B G
how to do journal???
WHAT IS ACCOUNTING?
Plz Tell Me the WHole knowlege Of Accounts,Wht Accounts Wht all taxes pzz Plz
explain sales/purchase accounting?
Audit 
