Why do call p&la/cas a P&l a/c ?, why not P{or}L a/c
Answers were Sorted based on User's Feedback
Answer / erphan jani khan
When an organization gets profit on sale of assets or any
scrap it is recorded on the credit side and at the same time
time when there is a loss on sale of assets or sale of
scrap, it will be recorded on DEBIT side of P&L a/c. As both
profits & losses are recorded in this account, it is called
as P&L a/c and not P{or}L a/c.
Is This Answer Correct ? | 46 Yes | 3 No |
Answer / dayanand ramgurwadi.
some times in p & l a/c there may be gross loss but at the
end we may get net profit What i mean in p & L a/c there
may be possibility of both profit and loss.
Is This Answer Correct ? | 25 Yes | 8 No |
Answer / laxman
Exactly we don`t know whether we get a profit or loss at
the end of the accounting period, thats why we call p&l a/c.
Is This Answer Correct ? | 13 Yes | 10 No |
Answer / shashidhar.n
Coz profit and loss account have both entries I mean it
have both debit and credit entries that is why we tell like
this.
Is This Answer Correct ? | 4 Yes | 2 No |
Answer / v. s. k. phani nallamalli
When an organization gets profit on sale of assets or any
scrap it is recorded on the credit side and at the same time
time when there is a loss on sale of assets or sale of
scrap, it will be recorded on DEBIT side of P&L a/c. As both
profits & losses are recorded in this account, it is called
as P&L a/c and not P{or}L a/c.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / sainath
the heading of the account should be given in respect to the
contents of the account and not merely with the result of
the account
Is This Answer Correct ? | 3 Yes | 3 No |
Answer / kiran kumar
In Profit and loss a/c, Both we get profit and Loss
Simultaneously in the credit and Debit side of the
respective A/c, As exactly we dont konow the final result
of a concern.
Is This Answer Correct ? | 2 Yes | 3 No |
Answer / manjeet singh
The criteria of P&L account is based on items on debit &
credit sides contributing towards profit & loss and not on
the actual result.
Is This Answer Correct ? | 1 Yes | 2 No |
at the time of drafting P&L a/c we are not in knowledge
that wheather at the end of accounting year there is loss
or profit with certainity. there may be loss or profit at
the end of A.Y
Is This Answer Correct ? | 2 Yes | 4 No |
what is the differences and similarities of cash inflow , revenue & gain
what are the basic 3 rules of accounting
Expand ------HMRL
Hello, Can u tell me the procedure of Sale Tax Registration in Jharkhand. (VAT & CST )WITH Supporting Proof
what are the similarities between cost accounting and management accounting?
how to prepare Profit and los accounts ?
8 Answers College School Exams Tests, MLA, Study Overseas,
wHAT IS THE DISTINCTION BETWEEN TRADE DISCOUNT AND CASH DISCOUNT
the following figures given to you: 2008-09 Sales Rs.100000 Loss 10000. 2009-10 Sales Rs.250000 Profit 20000 Calculate: P/V Ratio, BEP, Sales to make a profit of Rs.40000, Margin of safety at at profit of Rs.2000
If I deposited cash in a Bank, Is it Asset Or Liability for the Bank?
Expand-------GDR
What are the source of gaining long-term funds???? What are the limitations of gaining long-term funds???
What is invoice accounting rules?