What is the difference between balance sheet and profit and
loss account?
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Answer / sonika
Balance sheet is a statement which reveals the financial
position of a company as on particular date.It is static in
nature.
Profit & loss account is a statement which reveals the
result of business operation for the particular period.
| Is This Answer Correct ? | 32 Yes | 7 No |
Answer / james e
Balancesheet-it’s a financial statement that summarises a
company’s assets, liabilities, and shareholders’ equity at
a specific point in time. Most balance sheets are produced
quarterly although some farm firms use an annual balance
sheet. Any firm with annual sales greater than $200,000
should use the quarterly system because the firm needs more
frequent information on its financial structure than is
supplied annually. Also called statement of financial
condition, statement of financial position.It's called a
balance sheet because the two sides balance out. This makes
sense: a company has to pay for all the things it has
(assets) by either borrowing money (liabilities) or getting
it from shareholders (shareholders' equity).
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
Profit and loss account is A statement showing the
revenues, expenses, and income (the difference between
revenues and expenses) of a corporation over some period of
time. shows the revenues from business operations, expenses
of operating the business, and the resulting net profit or
loss of a company over a specific period of time.
Its a business financial statement that lists revenues,
expenses, and net income throughout a given period. Also
called earnings report, earnings statement, operating
statement.It begins with an entry for revenue and subtracts
from revenue the costs of running the business, including
cost of goods sold, operating expenses, tax expense and
interest expense. The bottom line (literally and
figuratively) is net income (profit).
In assessing the overall financial condition of a company,
you'll want to look at the income statement and the balance
sheet together, as the income statement captures the
company's operating performance and the balance sheet shows
its net worth.
| Is This Answer Correct ? | 13 Yes | 3 No |
Answer / srinivas
position of a company as on particular date.It is static in
nature.
Profit & loss account is a statement which reveals the
result of business operation for the particular period.
| Is This Answer Correct ? | 14 Yes | 7 No |
Answer / sudhashini
P&L reports the result of activity over a period of time
usually one year.
balance sheet reports the situation(assets,liabilities and
equity)at a point in time.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / devendra bhandari
Balance sheet shows the financialposition of the company as
on date.
Profit & loss account is for a period and can show the
actual position of our business - where we are.
| Is This Answer Correct ? | 8 Yes | 5 No |
Answer / venkatesh malakari
Balance sheet means Debit and credit total, B/s also called
position statement, balance sheet shows economic position of
the company profit & loss a/c contains Indirect incomes and
expenses and it shows all indirect income and indirect expanses
| Is This Answer Correct ? | 3 Yes | 4 No |
Answer / bharat patel
the item in the balanceshit is close after ending of the year
while, the item of profit and loss is tranfere to capital
account
| Is This Answer Correct ? | 1 Yes | 2 No |
Answer / bhushan nimbarao rane
Balance-sheet is nothing but an financial statement of the co.
It shows the financial position of the co.at the end of
accounting period of every year.It is also known as
statement of assets,liabilities,capital,
debt,debtors,creditors etc..,
from which we can predict the financial position of the co.
The balance-sheet is built on accounting policies &
procedures to make it more easy to understand,it is also
helpful to an auditor for making a report Co's financial
position.
In other words p&l statement is nothing but an
statement of profit & loss @ the end of the year of the
co.the credit side of this statement shows all receipt&
gains & debit side shows all Expenses & losses.Because of
this statement we know the profitability of the co.&also
know the financial position of the co.After calculating net
profit we transfer it to reserve & depreciation in such %&
remaining amt is distributed amongst shareholders of the co.
From the balance-sheet & p&l a/c The co.decides its
future plans &policies.....
| Is This Answer Correct ? | 4 Yes | 6 No |
Answer / mega
balance sheet is a stactic nature account
profit and lost account is use for recording gains and
losses...................
| Is This Answer Correct ? | 1 Yes | 8 No |
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