Interested to Buy Any Domain ? << Click Here >> for more details...
why we use the term profit and loss account instead of
profit or loss account
- 1 Answers
- 4809 Views
- I also Faced
- E-Mail Answers
Answer / chalapathi rao govada
The main objective of preparing the profit and loss account
is to know what is our netprofit or loss for a given period.
So based on this logic some of us will under an impression
that why can call it as profit or loss account.
But my dear friend just have a look at the logic below.
In the profit and loss account we will record all the
profit transactins and loss transactions.
Eg: profit on sale of a Fixed Assets.
Eg: Profit on Sale of investments in Stock market.
Eg: loss on sale of a capital Asset.
Eg: loss on sale of any security.
And: indirect transacitons which will altemately represents
profit or losses.Like
Sales --------- Major income source.
All revenue items---- Represents the earning capacity of
your organisation
All exp ----------- Which plays vital role in profit and
loss.
| Is This Answer Correct ? | 6 Yes | 0 No |
what is the difference between gross profit and net profit?
drawings by making a DD from bank ( suppose payable towards UIT ) and on cancellation on such DD what journal entry needs to be passed ?
Calculate Income Ta X On Nett Income Of Rs 365520 For Men,women And Senior Citizen For The Assessment Years 2009- 10 And 2010-11?
Give some example of real,personal & nominal accounts , & which kind of a/c reflect p&l & BS.
20 Answers Banking, HSBC, IT Industry, Motilal Oswal, SLK,
In FY2010-11, if person get salary 189600.00 after deduction of Profession tax and his investment 11000/- in LIC for whole year how many TDS deduct from his salary Pls reply i am waiting for Answer.
What is the uses of Ratio's in The Finanacial management? Explain it?
How to Calculate HRA, CCA, PF, Transport allowances in Salary if i am getting Rs. 48000/- PM?
Role played by a financial manager in matter of dividend policy
expand P W D
commisiion recieved journal entry and receipt required
What is the working formula for Current Ratio
how to calculate valuation of closing stock
Audit 
