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how does income and expenses account difference from Profit and Loss Account?
Wiki User
∙ 9y ago
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.
Wiki User
∙ 9y ago
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Why would stock be expensed in the profit and loss account?
Stock would be expenses to the profit & loss account (P&L) when: * It was used, or * It had no economic value
Why is depreciation is charged on profit and loss account?
Depreciation is the allocation of the portion of assets value to fiscal year in which it is used it is charged to profit and loss account because it is that portion of asset value which is expensed and expenses are shown in 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.
Are prepaid expenses a nominal account?
Prepaid expenses are the part of nominal account expenses which are not used during the current accounting period. They cannot be charged to profit and loss account as per matching concept. They find place in balance sheet and written off in the next accounting period.
What is the difference between account receivable and accounts payable confirmation?
account receivable- money coming in for profit account payble-money going out for a expense
Preparing departmental trading and profit and loss account?
When preparing departmental trading and a profit and loss account, expenses must be taken into account first. These include departmental expenses, and common expenses, including administrative expenses.
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 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.
Why would stock be expensed in the profit and loss account?
Stock would be expenses to the profit & loss account (P&L) when: * It was used, or * It had no economic value
Where put entry outstanding expenses in profit and loss account?
Outstanding expenses are put on the credit side in a loss and profit account. Outstanding expenses refer toÊthe amounts of money that are due for things like rent that are not yet paid.
Why is depreciation is charged on profit and loss account?
Depreciation is the allocation of the portion of assets value to fiscal year in which it is used it is charged to profit and loss account because it is that portion of asset value which is expensed and expenses are shown in profit and loss account.
Difference between Profit and loss account and Profit or loss account?
No difference. It is just a matter of symantics (different ways to say the same thing).
What are the expenses that come in indirect expenses?
The expenses those come in the debit side of the Profit & Loss Account of the Company are all indirect expenses.
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.
Are prepaid expenses a nominal account?
Prepaid expenses are the part of nominal account expenses which are not used during the current accounting period. They cannot be charged to profit and loss account as per matching concept. They find place in balance sheet and written off in the next accounting period.
What is Profit or loss account?
Profit and loss is nothing but an statements which shows the net profit and net loss during a period.
What is the difference between trading account and profit and loss account?
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
