IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR
LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT INSTEAD OF PROFIT
OR LOSS ACCOUNT ?
Answers were Sorted based on User's Feedback
Answer / sarathy
1. This account is for both Profit AND Loss. Its only after
finalization you come to know whether it is Profit OR Loss.
2. There is a chance of getting No Profit/ No Loss. Then
your P&L a/c will neither have Profit nor Loss, at the same
time it will have both Profit & Loss.
So, I guess, it is more apt logical callilng it P&L than
|Is This Answer Correct ?||21 Yes||3 No|
Answer / pnkjay
1.In P&L A/c individual items of profits and losses are
posted and then net profit or loss is found out.
2.It may be Gross Loss and Net profit or Gross profit and
So, it is called Profit & Loss account
|Is This Answer Correct ?||9 Yes||2 No|
Answer / rajesh
When doing business,end of the financial year only we came
to know we got profit or loss. So, instead of Profit or
loss a/c we says P& L A/c.it is like up & down.
|Is This Answer Correct ?||1 Yes||1 No|
Answer / ravi
p&l a/c involves combination of both profit and loss
items, so it is called p&l a/c
|Is This Answer Correct ?||1 Yes||3 No|
Answer / lakshmi
profit and loss account is correct It may either gross
profit and net profit or even net loss or viceversa
|Is This Answer Correct ?||0 Yes||2 No|
Answer / narshi
Hi, commonly we are calling profit and loss a/c because in
profit & loss a/c commonly comes only one i.e profit / loss.
so it is know only ofter done the final things only knows,
so commonly p & l a/c is correct
|Is This Answer Correct ?||1 Yes||7 No|
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
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