why is it called profit and loss account why not profit or
loss account, ( u either get profit or loss )
Answers were Sorted based on User's Feedback
Answer / megha arora
Profit & Loss A/C shows the net profit of the
Organisation.An oraganistion earns profit for
oprating,financing&investing activities etc.May be it be
the case that there may be loss from one activity and
profit from others and vice-versa.So P&L consists of both
loss as welll as Profit.That's why known as P&L not Por L
Is This Answer Correct ? | 159 Yes | 28 No |
Answer / sankari varadarajan
The profit and loss account shows the particulars through which the profit or income has been earned by an organization like any income received for the work that has been done. And at the same time, it also shows the particulars (like depreciation, bad debts) through which the firm's profit may get reduced or may incur loss. As it shows both the profit generating item and loss generating item at the same time and in the same account, it is known as profit AND loss account.
Is This Answer Correct ? | 12 Yes | 6 No |
Answer / ronald antony t
Because P&L a/c records profits earned by business and loss incurred to business
And Net Profit/loss is just balancing fig of abow insted of transfering all profits and loss we are just transfering Net Balance
Is This Answer Correct ? | 11 Yes | 7 No |
Answer / jovita
because we enter profits and losses in the p&l a/c
e.g: profit on sale of investment
loss on sale of machinery etc
Is This Answer Correct ? | 5 Yes | 3 No |
Answer / c a indudhara
It is called as "Profit and loss"not "profit or loss" why because.
Profit and loss account contains both profit from some operations and loss from some operation ex: profit on sale of asset and loss on sale of investments
As this statement contains both the thing, so it is called as Profit and Loss account
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ranjitha ravishetty
It can show only one item either profit or loss not both
Is This Answer Correct ? | 0 Yes | 1 No |
Answer / cr group
From Busineess Active ,you got profit from one activity ,loss from another activity so over all u got profit or loss
Is This Answer Correct ? | 1 Yes | 2 No |
Answer / sujit
Because, we may get profit in the Trading account but due to the operation activity we might have loss in the manufacturing account, so we call it profit and loss account instead of profit or loss account.
Is This Answer Correct ? | 3 Yes | 5 No |
Answer / prasant m
how much profit excess over expenses and losses or how much
expenses excess over profit,exactly can say,all the gains
and losses are collected in order to ascertain the excess of
gains over the losses or vice-versa. second Q is why not
Profit or Loss ,every word not denominate just from air dear
friend,there was some concept behind that that is the
difference between "And" and "OR",Every business has both
side effect if we will go each activities step by step, we
would find some transaction we have lost or spent more then
cost of goods and some cases gone according to business
motive so we can not say we got profit each transaction.
have a good day
Is This Answer Correct ? | 10 Yes | 13 No |
Answer / siva
the profit and loss account is not prepared every month of the year, and is prepared either quarterly or half yearly or else yearly. It is not necessary to incur profit during every period or else incur loss. And, as it comprises of bad debts , depreciation,etc., as its part,which are treated as loss sometimes in accounting, it is called as profit and loss account. The profit evolved in Profit and Loss account also carries losses of some periods. And i think, that is why we call it as Profit and Loss account and not as profit or loss account. This is what the reason, upto my knowledge.
If this is not correct, please place a reply.
Is This Answer Correct ? | 4 Yes | 7 No |
The following are details of an invoice from a foreign supplier of goods: 20 pieces of item X @ $ 20 per piece $ 400 20 pieces of item Y @ $ 5 per piece 100 Shippingcharges 40 Discount -80 Total $ 460 Total cost of above shipment of goods is Dh 2,300 which is made up of Dh. 2,070 representing cost of transferring the above invoice amount of $460 and the balance of Dh 230 represents other direct costs You are required to calculate the landed cost in Dirhams for ONE PIECE of item X.
What's the meaning of Preferential Creditor?
who to culculated depriciation of fixed asstes & buildings
what is the Full form of SAS like CA?
what are the security data points
what is the capitla expenditure & revenue expenditure give the 5 difference between capital & revenue expenditure and also its example?
what is mba tell me the more benefits in mba
can a real account shows a credit balance
Rams due of Rs 32500/- was settled thru adjustment of security deposit Rs 12000/-and the balance in cash.pass necessary entry
In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.
what is subsidiary book?
what is Derivative Documentation,Derivative Settlements,Derivative confirmation?