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In the profit and loss account of a business you should accrue for what bonus you expect to pay out over the period it is earned. Obviously if your expected bonus payout fluctuates through the year then the rate of accrual should adjust. For example if a company expects to pay out £120k of bonuses for 2009 which will be paid out in early 2010 then you need to accrue £10k per month during 2009 resulting in a year end accrual of £120k.
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Under what heading would fixed assets show on a profit-loss account?
They do not reflect in the profit loss account at all.
Why profit and loss account is called as profit and loss account and why not profit or loss account?
Tradition, and the need to call it something.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
What is the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
Is profit and loss account is a nominal account?
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
What would you find on a profit and loss account?
In profit and loss account normally list all in the revenues and expenses and profit or loss for any particular fiscal year of company.
About projected balance sheet and profit and loss account?
how to prepare the forecast report of profit and loss account with balancesheet
Which account you in 3 net loss?
The profit and loss account is the account that can be used to calculate the net loss.
