Why do call p&la/cas a P&l a/c ?, why not P{or}L a/c
Answers were Sorted based on User's Feedback
Answer / erphan jani khan
When an organization gets profit on sale of assets or any
scrap it is recorded on the credit side and at the same time
time when there is a loss on sale of assets or sale of
scrap, it will be recorded on DEBIT side of P&L a/c. As both
profits & losses are recorded in this account, it is called
as P&L a/c and not P{or}L a/c.
Is This Answer Correct ? | 46 Yes | 3 No |
Answer / dayanand ramgurwadi.
some times in p & l a/c there may be gross loss but at the
end we may get net profit What i mean in p & L a/c there
may be possibility of both profit and loss.
Is This Answer Correct ? | 25 Yes | 8 No |
Answer / laxman
Exactly we don`t know whether we get a profit or loss at
the end of the accounting period, thats why we call p&l a/c.
Is This Answer Correct ? | 13 Yes | 10 No |
Answer / shashidhar.n
Coz profit and loss account have both entries I mean it
have both debit and credit entries that is why we tell like
this.
Is This Answer Correct ? | 4 Yes | 2 No |
Answer / v. s. k. phani nallamalli
When an organization gets profit on sale of assets or any
scrap it is recorded on the credit side and at the same time
time when there is a loss on sale of assets or sale of
scrap, it will be recorded on DEBIT side of P&L a/c. As both
profits & losses are recorded in this account, it is called
as P&L a/c and not P{or}L a/c.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / sainath
the heading of the account should be given in respect to the
contents of the account and not merely with the result of
the account
Is This Answer Correct ? | 3 Yes | 3 No |
Answer / kiran kumar
In Profit and loss a/c, Both we get profit and Loss
Simultaneously in the credit and Debit side of the
respective A/c, As exactly we dont konow the final result
of a concern.
Is This Answer Correct ? | 2 Yes | 3 No |
Answer / manjeet singh
The criteria of P&L account is based on items on debit &
credit sides contributing towards profit & loss and not on
the actual result.
Is This Answer Correct ? | 1 Yes | 2 No |
at the time of drafting P&L a/c we are not in knowledge
that wheather at the end of accounting year there is loss
or profit with certainity. there may be loss or profit at
the end of A.Y
Is This Answer Correct ? | 2 Yes | 4 No |
You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
what is GL Balance
DIFFERNCE BETWEEN TRADING ACCOUNT AND PandL ACCOUNT
What type of questions are asked for Interview of Manager Finance in Airport Authority of India ?
Expand A O P
1. Cold Ice, Inc. sells ice cream sells for $2 each. The variable costs per ice cream are $1 and the fixed overheard costs are $ 0.35. A summer camp wants to place a one-time order for 100 cone of ice cream at a price of $ 1.25 each. What is the minimum price hot dogs should be charge for this special order?
I want to become CFA so kindly provide me all information regarding this like fees structure,colleges in mumbai,duration etc.
Whast do you mean by diversification? Is it related to risk?
Expand CTD
what is accounting entries to be made in TAlly for stock (rice, cocunut, oils etc.,) used for food (like idly, dosa etc.,) pls guide us
Briefly explain about Stok valuation.
why do u prepare trial balance