Answer Posted / chalapathi rao govada

The main objective of preparing the profit and loss account
is to know what is our netprofit or loss for a given period.

So based on this logic some of us will under an impression
that why can call it as profit or loss account.

But my dear friend just have a look at the logic below.

In the profit and loss account we will record all the
profit transactins and loss transactions.
Eg: profit on sale of a Fixed Assets.
Eg: Profit on Sale of investments in Stock market.

Eg: loss on sale of a capital Asset.
Eg: loss on sale of any security.

And: indirect transacitons which will altemately represents
profit or losses.Like

Sales --------- Major income source.
All revenue items---- Represents the earning capacity of
your organisation
All exp ----------- Which plays vital role in profit and
loss.

what is your achievements?

1986

---

Give me the asset revaluation (at the time of asset value increase & decrease) journal entrys?

2191

---

What is meant by advance ruling? What is the scheme of advance rulings?

2024

---

What does my credit score mean?

2032

---

We can add the no. of increase in shares due to exercise of the options.Why diluted eps is calculated separatey?

2346

---

Define Salry for the following purpose 1.To calculate HRA

2153

---

Expand--------AA

2171

---

what is Rectification of Errors ?

2249

---

cash sales and credit sales both are asset or liability?

1453

---

Expand----------SAMC

2104

---

after payment of interest of a loan account by using credit note voucher in tally 9........don't anyone thinks that we have to adjust the cash account by passing cr entry on journal for interest payment...

2015

---

what is capital market and money market? what is primary market and secondary market?

2199

---

Expand--------TAO

2171

---

what is balance sheet, capital budgeting, financial statements, current ratio, profit maximization?

2329

---

What is Financial planning?

2061

---