In the income statement we may get profit or loss but the name of the statement was Profit and Loss account Why it was so?



In the income statement we may get profit or loss but the name of the statement was Profit and Loss ..

Answer / mudunuri

In the income statement there may be other revenue receipts other than main activity of the business. Even though main business activity brings loss to the concern and because of other income it will result in profits. Hence Profit and loss account is a mixed statement with loss from main activity and profit from other activity

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