What are the difference between P/l a/c and income and
expenditure
- 12 Answers
- 33265 Views
- Genpact, IBM, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / suvankar pal
P/L A/C is prepared by Profit Making Organisation
Income & Expenditure A/C is prepare by non-profit making
organisation
| Is This Answer Correct ? | 28 Yes | 5 No |
Answer / hari nath jha
Mention below are the main differences/distinction between:
=>Profit And Loss Account
1 Prepare by business undertakings
2 Credit balance of this account is known as “Net profit”
and added to opening capital
3 Debit balance of this account is known as “ Net loss” and
deducted from opening capital
4 To check correctness of accounts, trial balance is
prepared before preparing this Profit & Loss Account
=>Income And Expenditure Account
1 Prepared by non-trading organizations
2 Credit balance is known as “excess of income over
expenditure or surplus” and added to opening capital fund
3 Debit balance is known as “excess of expenditure over
income or deficit” and deducted from opening capital fund
4 To check correctness of accounts, receipts and payment
account is prepared before preparing this account.
| Is This Answer Correct ? | 16 Yes | 0 No |
Answer / praveen acharya
P/L a/c is prepared to know the profit or loss of the
enterprise, income and expenditure is prepared to know the
income over expenditure or expenditure over income.
| Is This Answer Correct ? | 13 Yes | 2 No |
Answer / xyz
I&E A/c is prepared by non -TRADING organisations & P&L A/c
is prepared by TRADING organisations. Further, I&E A/c
exhibits SURPLUS or DEFICIT & P&L A/c Exhibits PROFIT\LOSS
| Is This Answer Correct ? | 11 Yes | 0 No |
Answer / murugesh
income and expenditure account is created by non profit
making organizations (NPO) and P&L account is created by
business like trading and manufacturing etc..
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / sumitra.raghavan
profit and loss acct are prepared by profit making
companies...4m it we get profit or loss
income and exp statement prepared by non profit making co's
we get surplus or defcit from it
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / sallum
i/e a/c is created by non profit seeking orgn & p&l a/c is
prepared by profit seeking orgn.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / gopal reddy. illuri
Profit and loss a/c is prepared by the trading, profit oriented firms to know the profit earned or loss incurred by the business during the regular periodic interwals. It reveals the net margin on sales made by the concern after meeting all expenses which are required to make the goods available to the consumers(after providing all indirect expenses).It is caliculated by deducting all the indirect expenses from the gross profit such as selling and distribution, management, depreciation and maintanance, financial expenses, and extraordinary items. the difference is called Net profit.
Income and Expenditure a/c is prepared by the non profit oriented concerns like clubs associations voluntary organisations to know the surplus or deficit during a particular period. it is caliculated by deducting all expenditure incurred in a period from the income earned during that period. If the income exceeds the expenditure it is called as surplus. If expenditure Exceeds income it canbe termed as deficit.
| Is This Answer Correct ? | 2 Yes | 0 No |
What is the written of minimum cheque value?
How to define employee as supplier
i want to know f form and how to use and how can purchase
What is Tax Groups
What is the purpose of accounts like e.g. expense accounts assigned a account number 0040, principal account assigned anumber 0060.In our general ledger software such numbers are assigned.I want to know how these numbers (accounts) help in maintaing accounts of a company (like bank reconciliation).
What is meant by forex P&L a/c.?
What is the depreciation rates for all the assets?like plant & Machinery,computers,software,land & buildings
What is the abbreviation for the accounting terms debit and credit?
What is a Special Calendar and its types
What is step by step procedure to file e-tds quarterly teturn ?
Purchases entry?
what is the book keeping?
Audit 
