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.