In profit and loss account normally list all in the revenues and expenses and profit or loss for any particular fiscal year of company.
They do not reflect in the profit loss account at all.
The purpose of the profit and loss account is to give you an idea about whether a company has made a profit or loss more than a financial year. An income and loss account begins with the trading account and then takes into account all the other outcome associated with the company.
Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
Balance sheet is the summary of Assets ,Liabalities , and profit or loss from Profit and loss account. following are the common reasons 1.As Purely based on nduble entry system For each ledger debits there should a equlent ledger credit on all transactions. 2. We can divide ledgers into Balance sheet items and Profil and loss account items. Balance sheet ledgers are ledger balances which directly reflects in Balance sheet Profit and Loss ledgers are ledgers which is reflecting only in Profit and loss account not in balance sheet. 3. Check the opening balance sheet, difference in opening balance sheet may the reason.
you should type this in google: Trading, Profit & loss a/c Format It should be explained with all the examples given
expenditure is the amount of money spent on a weekly or monthly basis.income is the financial gain (earned or unearned) over a given period of time.a profit and loss account is an account compiled at the end of an accounting period to show gross and net profit or loss
The expenses those come in the debit side of the Profit & Loss Account of the Company are all indirect expenses.
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
Finalization of Accounts: It is the accounts of Finanical Statement / Balance Sheet, Income / Earning statement / Profit & Loss A/c & All Ledgers which is finally accounted in Trial Balance for the company.
All items in income statements are temporary accounts because at the year end all close to income summary account and transfer to balance sheet in shape of profit or loss to be income statement starts with zero from next year.
It is a financial statement and a part of the final accounts of a business.It is also known as the profit and loss statement/account and,,under the new IAS,is known as the statement of comprehensive income.It mainly serves to deduce the profit/(loss) for the year i-e the income minus all the expenses and costs.