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Account receivable is a balance sheet item shown under current assets on the asset side, having a debit balance. It doesn't have anything to do with net income as accounts receivable is never shown in the trading profit and loss account. Only credit sales relating to such receivables during the current year forms part of the credit side of profit and loss and nit the account receivable itself.
In a Profit and Loss Account, you put income tax that you pay to the government in the third section, the appropriation account.
Profit and Loss.
The incremental profit or loss is the change in profit or loss over the designated time period. After calculating the profit or loss, for example on a monthly basis, the delta between that and the average monthly profit or loss from the prior year can be determined.
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.
Account receivable is a balance sheet item shown under current assets on the asset side, having a debit balance. It doesn't have anything to do with net income as accounts receivable is never shown in the trading profit and loss account. Only credit sales relating to such receivables during the current year forms part of the credit side of profit and loss and nit the account receivable itself.
Profit & Loss Account is the Statement showing indirect expenses and receivable of a Company where as Balance Sheet is the Statement highlighting Assets and Liabilities of the said Company.
In a Profit and Loss Account, you put income tax that you pay to the government in the third section, the appropriation account.
Unrealised foreign exchange gain and loss is moved through equity while realised gain and loss is charged to profit and loss.
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
Tradition, and the need to call it something.
Profit and Loss.
The incremental profit or loss is the change in profit or loss over the designated time period. After calculating the profit or loss, for example on a monthly basis, the delta between that and the average monthly profit or loss from the prior year can be determined.
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.
what are the advantages of profit and loss statement?
"What are the limitations of profit and loss account?"
Provision for bad and doubtful debt is not go to profit and loss account, and it is go to balance sheet.