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IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR
LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT INSTEAD OF PROFIT
OR LOSS ACCOUNT ?

Question Posted / amitav

Answers were Sorted based on User's Feedback



IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / sarathy

1. This account is for both Profit AND Loss. Its only after
finalization you come to know whether it is Profit OR Loss.

2. There is a chance of getting No Profit/ No Loss. Then
your P&L a/c will neither have Profit nor Loss, at the same
time it will have both Profit & Loss.

So, I guess, it is more apt logical callilng it P&L than
PoL.

Is This Answer Correct ?    21 Yes 3 No

IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / pnkjay

1.In P&L A/c individual items of profits and losses are
posted and then net profit or loss is found out.

2.It may be Gross Loss and Net profit or Gross profit and
Net loss.

So, it is called Profit & Loss account

Is This Answer Correct ?    9 Yes 2 No

IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / rajesh

When doing business,end of the financial year only we came
to know we got profit or loss. So, instead of Profit or
loss a/c we says P& L A/c.it is like up & down.

Is This Answer Correct ?    1 Yes 1 No

IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / ravi

p&l a/c involves combination of both profit and loss
items, so it is called p&l a/c

Is This Answer Correct ?    1 Yes 3 No

IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / lakshmi

profit and loss account is correct It may either gross
profit and net profit or even net loss or viceversa

Is This Answer Correct ?    0 Yes 2 No

IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT IN..

Answer / narshi

Hi, commonly we are calling profit and loss a/c because in
profit & loss a/c commonly comes only one i.e profit / loss.
so it is know only ofter done the final things only knows,
so commonly p & l a/c is correct

Is This Answer Correct ?    1 Yes 7 No

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