Answer / gurpreet singh chahal , ballar

P&L A/c is prepared for the Business Organization whose aim
is to earn profit by running business whereas Income &
Expenditure A/c is prepared for the non-Profit
Organization,Trusts etc.

Answer / abhinav srivastava

Profit And Loss Account(p/l acc)
Income And Expenditure Account(I/E acc)
1.Prepare by business undertakings(p/l acc)
Prepared by non-trading organizations(I/E acc)
2.Credit balance of this account is known as “Net profit” and added to opening capital(p/l acc)
Credit balance is known as “excess of income over expenditure or surplus” and added to opening capital fund(I/E acc)
3.Debit balance of this account is known as “ Net loss” and deducted from opening capital(p/l acc)
Debit balance is known as “excess of expenditure over income or deficit” and deducted from opening capital fund(I/E acc)
4.To check correctness of accounts, trial balance is prepared before preparing this Profit & Loss Account(p/l acc)
To check correctness of accounts, receipts and payment account is prepared before preparing this account(I/E acc)

Answer / kaushik patra , ibcs, soa univ

Through P/L a/c we get Net profit or net loss of a concern
but incase of I/E a/c we get net surplus or net deficit of
the organigation as we prepare P/L a/c for a profitable
organigation & I/E a/c for a nonprofitable organigation.

Answer / mainak das

the main diffarence between p/l a/c and income and
expenditure a/c is that p/l a/c prepare only for the
profitable concern like company and income expenditure a/c
prepare only for the non profit seeking concern like
charitable institution, club, hospital.

Answer / mohd imran khan

P & L account make by profitable orgnaisation but income &
exp. account make by non-profitable orgnisation.

Answer / nirakar

Income statement also called p & l statement. It is a
company's financial statement, the purpose of the income
atatement is to show during the period being report.

Any cash received from current yr is regarded only is
income.and any cash paid in all the purpose of comapny's
work may or may not be regarded as expenditure.

Answer / pravin sharma

p & l a/c show gross & net profit or loss whether income &
expenditure a/c show direct/indirect income or expenses

Answer / sandeep kumar

profit n loss is prepared to acheive the objectives of
accoutancy.
While income n expenditure is prepared to ascertain the net
profit n loss, which is transferred to capital account at
the end of the financial year.

What are adjustment entries? Why are they passed?

0 Answers  

Expand MCC.

0 Answers  

what is acounting cycle ?

3 Answers   Bank Of America, HSBC, JPMorgan Chase,

What is E-Governance?

1 Answers  

Do you know anything about PPP?

0 Answers   RBI,

Sean Alicandri, a sophisticated investor who is both willing and able to take risk, has just noticed that Mid- West Airlines has become the target of a hostile takeover. Prior to the announcement of the offer to purchase the stock for $72 a share, the stock had been selling for $59. Immediately after the offer, the offer the stock rose to $75, a premium over the offer price. Such premiums are often indicative that investors expect a higher price could occur if a bidding was erupts for the company or if management buyout of the firm. Of course, if neither of these scenarios occurs, the price of the stock could fall back to the $72 offer price. In addition, if the offer were to be withdrawn or defeated by management, the price of the stock could fall below the original stock price. Alicandri has no reason to anticipate that any of these possibilities will be the final outcome, but the realizes that the price of the stock will not remain at $75. If a bidding war erupts, the price could easily exceed$100. Conversely, if the takeover fails, he expects the price to decline below $55 a share, since he previously believed that the price of the stock was overvalued at $59. With such uncertainty, Alicandri does not want to own the stock but is intrigued with the possibility of earning a profit from a price movement that he is certain must occur. Currently there are several three months put and all options traded on the stock. Their strike and market prices are as follows: Strike Price Market Price of Call Market Price of Put $50 $26.00 $0.125 55 21.50 0.50 60 17.00 1.00 65 13.25 1.75 70 8.00 3.50 75 4.25 6.00 80 1.00 9.75 Alicandri decides the best strategy is to purchase both a put and a call option (to establish a straddle). Deciding on a strategy is one thing; determining the best way to execute it is quite another. For example, he could buy the options with the extreme strike price (i.e. the call at $80 and the put at $50). Or he could buy the options with the strike price closest to the original $72 offer price (i.e. buy the put and the call at $70). To help determine the potential profits and losses from various positions, Alicandri developed profit profiles at various stock prices by filling in the following chart for each position: Price of the stock Intrinsic Value of the Call Profit on the Call Intrinsic Value of the Put Profit on the Put Net Profit $50 55 60 65 70 75 80 85 To limit the number of calculations, he decided to make three comparisons: (1) the purchase of two inexpensive options-buy the call with the $80 strike price and the put with the $60 strike price, (2) the purchase of the options with the $70 strike price, and (3) the purchase of the options with the price closest to the original stock price (i.e., the options with the $60 strike price). Construct Alicandri’s profit profiles and answer the following questions. 1) Which strategy works best if a bidding war erupts? 2) Which strategy works best if the hostile takeover is defeated? 3) Which strategy works best if the original offer price becomes the final price? 4) Which of the three positions produces the worst result and under what condition does it occur? 5) If you were Alipcandri’s financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

0 Answers   Investment Bank,

what features are available in Tally ERP 9 for Accounting?

0 Answers  

I am studing in MEB(MBA+IT), In our course there is no specialation and I want to go in finance, in june-july i am going to do intersip program so what would i do to make arrengement for my summer training

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What is the contestable period in an insurance policy?

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What is Shares Split?

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i am doing my mba and selected for clerk for sbi now tell me what should i do? can sbi give me leave for the exam if i selected.

2 Answers  

please send me wha are the common questions asked in the interview in BPO-NON voice companies?

0 Answers