why should we call profit and loss account in general we get
profit either loss can we call that as profit or loss account?
- 1 Answers
- 3051 Views
- DuPont, I also Faced
- E-Mail Answers
Answer / gupta
We post all expenses and losses to the debit side of Profit and loss account and we post all incomes and gains to the credit side of profit and loss account.The outcome of the account may be either profit or loss i.e, we get profit if credit side is more and we get loss if debit side is more.But while recording transactions we post both profits(incomes & gains)and losses(expenses and losses).This is the reason why it is called profit and loss account but not profit or loss account.
| Is This Answer Correct ? | 3 Yes | 1 No |
what is the relationship between cost accounting financial accounting and managerial accounting?
Explain the Parameters required in the Setup of Financial Option and Payable Option
How Many Methods of Depriciation & Which are those ??
Discount payble and reciveble entries what type of vochars entry pleas tell...............
goods sold to mr x of rs5000/-,out of that we give him discount allowed of rs 500/-,and we take setting charges of rs1000/-.so what will be the entry?
Definition of push down accounting
explain about ISO certificate ?
Can a firm claim preliminary expenses incurred(manufacturing) or only its is applicable to Companies? can a firm claim ,1/5 of such expenses incurred as deduction as in case of Companies? or any other procedure.
What is tds and how it is calculated?
Please tell me jurnal entries for input vat and output vat?
what is the difference b/w gain and profit?
what is the Cash purchase limit.
Audit 
