why we use the term profit and loss account instead of
profit or loss account
- 4 Answers
- 7540 Views
- Syntel, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / sushil mohan
Actually Profit & Loss A/c is the part of Final A/c and
in Profit & Loss A/c we record incomes and gains from all
the sources as well as expenses and losses occured both,
thats why it is termed as Profit & Loss A/c not Profit or
Loss A/c.
we find either Profit or Loss from the Profit & Loss
A/c, yet we term it 'Profit & Loss A/c' because without
comparison of incomes and expenses we can not find the
actual or net profit or loss result.
If we term it as Profit or Loss A/c, we will be
restricted to record only profit or loss that will not lead
to the end result.
| Is This Answer Correct ? | 17 Yes | 0 No |
Answer / chalapathi rao govada
Becasue we are consideing various profit transactins and
loss transactions during a specified period.
Eg: profit on sale of assets
Loss on sale of Assets.
Eventhough our objective of preparing p&L is to determine
what is the profit or loss for the given period.Based on
the above logic we are calling it as profit and loss
account.
| Is This Answer Correct ? | 10 Yes | 0 No |
Answer / kruti
In Profit & Loss a/c we are recording both profit
transaction & loss transaction. profit on sell of goods or
services or assets and loss on on giving various charges,
expenses or sale of machinery.
so here we are recording both transaction instead of
recording single one. that's y we are called this account
profit & loss a/c instead of profit or loss a/c.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / subramanyam
becase we are preparing p\l a\c so there is a chance get to
loss to get profit in trading a\c there is a chance to loss
in p\l a\c
| Is This Answer Correct ? | 0 Yes | 9 No |
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?
hi all plz where interveiws happening in hyd regarding accounting and finance.....plz post here....
what is the accounting treatemnt for issuing material to a subcontractor on recovery basis?
how to get bank reconsilation statment
what is the step in preparing the schedule of audit? can someone explain for me?
what is dividend? how do the use an accountancy?
Expand--------ADCB
what are the items comes under personal,real,nominalaccounts?
suppose as a company i have to pay rennt to tennant but not paid it means payable so how can ipass the entry in tally is any another rent a/c under another head required to create.
While selling fertilisers can we charge VAT on excise duty.
What is Subsidiary book?Explain the different Books along with debit note& credit note?
What is Portfolio? What is the Portfolio Management style? Explain Briefly the investment Process?
Audit 
