Profit & Loss Account

viswa_111@gmail.com

Hi All,
Why don't we call it Profit OR Loss Account ", even the result of this account is only to show PROFIT OR LOSS , we are calling it as PROFIT & LOSS Account..
Any answers please.....
Thanks & Regards,
Viswanath
24th April 2007 From India , Mumbai

PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION

Anirudha

Sr.executive,hr

Viswa_111@gmail.com

Manager -accounts

+1 Other

anirudha

We call it as a profit and loss account because while showing a comparitive profit and loss account if there is loss in one year and profit in next year we need to show in both the sides.
also some accountants show opening balance of profit(loss) and then add to it current years profit(loss).
25th April 2007 From India , Bahadurgarh

nr_sharma

Hi, The ledgers affecting P & L A/c some of them will be having some losses (expenses) others will have profit (income) hence we call it as PROFIT & LOSS A/c as both profit & loss making items appear in one A/c
10th November 2012 From India , Bangalore