how to create a profit and loss a/c

Answer Posted / jophy

We get the Gross Profit from Trading A/c and it should be
Credited to Profit & Loss A/c. All indirect incomes should
be credited and all indirect expenses should be debited. If
the Credit side is higher than debit side then we will get
the Net Profit. Otherwise we will get Net Loss. The balance
should be carried to Balance Sheet in the Liability Side.

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