why we use the term profit and loss account instead of profit or loss account

why we use the term profit and loss account instead of
profit or loss account

Question Posted / sats_20

4 Answers
7951 Views
Syntel, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

why we use the term profit and loss account instead of profit or loss account..

Answer / sushil mohan

Actually Profit & Loss A/c is the part of Final A/c and
in Profit & Loss A/c we record incomes and gains from all
the sources as well as expenses and losses occured both,
thats why it is termed as Profit & Loss A/c not Profit or
Loss A/c.
we find either Profit or Loss from the Profit & Loss
A/c, yet we term it 'Profit & Loss A/c' because without
comparison of incomes and expenses we can not find the
actual or net profit or loss result.
If we term it as Profit or Loss A/c, we will be
restricted to record only profit or loss that will not lead
to the end result.

Is This Answer Correct ?

17 Yes

0 No

why we use the term profit and loss account instead of profit or loss account..

Answer / chalapathi rao govada

Becasue we are consideing various profit transactins and
loss transactions during a specified period.

Eg: profit on sale of assets
Loss on sale of Assets.

Eventhough our objective of preparing p&L is to determine
what is the profit or loss for the given period.Based on
the above logic we are calling it as profit and loss
account.

Is This Answer Correct ?

10 Yes

0 No

why we use the term profit and loss account instead of profit or loss account..

Answer / kruti

In Profit & Loss a/c we are recording both profit
transaction & loss transaction. profit on sell of goods or
services or assets and loss on on giving various charges,
expenses or sale of machinery.
so here we are recording both transaction instead of
recording single one. that's y we are called this account
profit & loss a/c instead of profit or loss a/c.

Is This Answer Correct ?

1 Yes

0 No

why we use the term profit and loss account instead of profit or loss account..

Answer / subramanyam

becase we are preparing p\l a\c so there is a chance get to
loss to get profit in trading a\c there is a chance to loss
in p\l a\c

Is This Answer Correct ?

0 Yes

9 No

Post New Answer

More Accounting AllOther Interview Questions

What is diff. between mutual fund and security?