why we use the term profit and loss account instead of
profit or loss account
- 4 Answers
- 7596 Views
- Syntel, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
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 |
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 |
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 |
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 |
What do you mean by Revenue? does it include the Service Tax,VAT etc., by any chance ?
Is WCT paid to be considered as overhead during costing in construction firm?
what is the jornal entry for repairs
when the creditors shows debit balance
OBJECTIVES OF ACCOUNTING ?
9 Answers IBM, State Bank Of India SBI,
hedge fund, hedging
Define Busines entity concept?
why is TDS treated as an asset while preparing Balance sheet.
A furniture dealer purchased 10 units of sofa sets each costs 2500 out of which one is for shop purpose.Pass necessary entry
What are Accounting Standards
Can closing stock of current year be present in tht Trial Balance of said year...????
when does accounts receivable have a credit balance?
Audit 
