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,

From India , Mumbai
Manager -accounts
+1 Other

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).

From India , Bahadurgarh
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
From India , Bangalore

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