02-17-2007, 05:08 PM
The Profit & Loss Account (P&L) is a report of the company's profit on the sale of their goods The Profit and Loss (P&L) account summarises a business' trading transactions - income, sales and expenditure - and the resulting profit or loss for a given period.
he profit or loss arose â e.g. categorising costs between âcost of salesâ and operating costs. A profit and loss account starts with the TRADING ACCOUNT and then takes into account all the other expenses associated with the business.
Trading account
The trading account shows the income from sales and the direct costs of making those sales. It includes the balance of stocks at the start and end of the year. in trading account Opening stock and purchases and direct cost(wages,manufacturing expences and freight in) written on debit side while as sales and closing stock written on credit side.then we find out GROSS PROFIT OR LOSS if loss then its written on credit side and if profit then u written on debit side...
A profit and loss account is produced primarily for business purposes - to show owners, shareholders or potential investors how the business is performing. But most of the information is also used by HM Revenue & Customs to work out your tax bill.This guide tells you about the basic financial records you need to keep to enable you to report your profit or loss each year.The information should help you decide whether you need the services of an accountant or bookkeeper, or whether you can do it yourself.in profita nd loss account all indirect income(commision received, interest received)written on credit side below of Gross profit and all expences like(salary,depreciation,petty expences, commision allowed and interect allowed and rect ,printing and stationary etc)written on debit side and after calulation u find out a net income (on debit side) or net loss(on credit side)
he profit or loss arose â e.g. categorising costs between âcost of salesâ and operating costs. A profit and loss account starts with the TRADING ACCOUNT and then takes into account all the other expenses associated with the business.
Trading account
The trading account shows the income from sales and the direct costs of making those sales. It includes the balance of stocks at the start and end of the year. in trading account Opening stock and purchases and direct cost(wages,manufacturing expences and freight in) written on debit side while as sales and closing stock written on credit side.then we find out GROSS PROFIT OR LOSS if loss then its written on credit side and if profit then u written on debit side...
A profit and loss account is produced primarily for business purposes - to show owners, shareholders or potential investors how the business is performing. But most of the information is also used by HM Revenue & Customs to work out your tax bill.This guide tells you about the basic financial records you need to keep to enable you to report your profit or loss each year.The information should help you decide whether you need the services of an accountant or bookkeeper, or whether you can do it yourself.in profita nd loss account all indirect income(commision received, interest received)written on credit side below of Gross profit and all expences like(salary,depreciation,petty expences, commision allowed and interect allowed and rect ,printing and stationary etc)written on debit side and after calulation u find out a net income (on debit side) or net loss(on credit side)