What are the difference between P/l a/c and income and
expenditure
Answer Posted / gopal reddy. illuri
Profit and loss a/c is prepared by the trading, profit oriented firms to know the profit earned or loss incurred by the business during the regular periodic interwals. It reveals the net margin on sales made by the concern after meeting all expenses which are required to make the goods available to the consumers(after providing all indirect expenses).It is caliculated by deducting all the indirect expenses from the gross profit such as selling and distribution, management, depreciation and maintanance, financial expenses, and extraordinary items. the difference is called Net profit.
Income and Expenditure a/c is prepared by the non profit oriented concerns like clubs associations voluntary organisations to know the surplus or deficit during a particular period. it is caliculated by deducting all expenditure incurred in a period from the income earned during that period. If the income exceeds the expenditure it is called as surplus. If expenditure Exceeds income it canbe termed as deficit.
Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
Tell me do you have any idea about service tax or excise?
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales Rs 15000. He also takes over goods to the value of Rs 2000. The profit on joint venture is 7 (a) Rs.3000 (b) Rs.5000 (c) Rs.6000 (d) Rs.3500
What is deferred account?
Differentiate public and private accounting?
what is contribution? how does it help in taking managerial decisions?
Tell us do you have any idea about service tax or excise?
What is journalizing?
how will you handle fairs in askening with the a high posistion person in a company? how will i develop my attitude when interviewed? am always scared.
"Trial Balance is not a comclusive proof of the accuracy of the books of accounts." Explain this statement and describe the errors which are not disclosed inspite of the agreement of trial balance.
what is the manual procedure for accounting
What is the important of computerized accounting to manual?
x pay incentive to y with tds@10%.what is the journal entry in the books of x & y?
I got a transaction of Online Recruitment Charges, So What is the Ledger to Create?
Tell me in accounting, vat abbreviates what?
hi ,i need some suggestion,comptd my graduation in 2012,but i wasted my time for 6 month,just i want 2 escape from this question,what u did for 6 months,how can i give proper anser to them?pls suggest me