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why is it called profit and loss account why not profit or
loss account, ( u either get profit or loss )
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Answer / arthi
There are two reasons: One is that you will not be aware initially how your operations would end, at the close of the year. It may either be profit or loss.
Another one would be it may be a profit in one year and loss in another year.
Further, the profit or loss is know only at the year end. But, in the course of the accounting year, when the account is drawn up say monthly, quarterly or half yearly, the results may either be profit or loss and the resultant profit or loss is only at the end of the year.
| Is This Answer Correct ? | 2 Yes | 10 No |
Answer / aditya bhushan
Because in profit and loss account we show both profit and loss on one statement for calculating net profit and net loss ,as we all know that net profit is different between debit and credit side of profit and loss account.
so that we use to say it profit and loss account not profit and loss account
| Is This Answer Correct ? | 2 Yes | 15 No |
Answer / dayakar
As it shows profits/gains at credit side as well as expenses
or losses at debit side
| Is This Answer Correct ? | 11 Yes | 28 No |
My Question regarding owners drawings. case1; If owner paid some expenses from his own pocket and later that amount added to his salary then what adjustment entries will needed.
f your account is debited instead of credit, then what do you do? How do you correct your account?
Expand N A B A R D
Expand---------SDRT?
Explain the features of Equity share capital?
About Funding Working Capital to a Company? A company Turn over is 12 Cr, but in the bank statement credits per month is more that 3 Cr? how this could happen? awaiting your views?
Difference between Provision & Reserve?
EXPAND___________NAC
Who are called as partners
capital reserve and revenue reserve
outstanding expenses are the expenses that "unpaid"at the end of the accounting period e.g.salaries rent so they all come to under nominal accounts which is debt all expenses and losses and credit all gains since they are unpaid hence they must be credited
what is reconciliation ?
Audit 
