Profit and Loss Account
Profit and loss account is an account prepared at the end of the fiscal year to know about the company’s net profit or loss. Profit and loss account has two parts that is trading account and lower part is operating expenses and liabilities are there. After profit and loss account preparation it is easy to have a look on the performance of the company.
Profit and Loss Account in Statement Form/Income Statement: Trading and profit and loss account/income statement may be prepared either in account form (T form) or in report form (statement form). Trading and profit and loss account in both the forms give the same information.
Final Accounts: Learning Objectives: What is trading and profit and loss account? What is the the difference between trial balance and balance sheet? Prepare trading and profit and loss account and balance sheet. Explain the preparations of final account Having proved the arithmetical accuracy
Trading account format and accounting trading and profit and loss account examples in balance sheet. Different solved problems in trading profit and loss a/c in final accounts format for carriage outwards. Learning Objectives: Prepare trading and profit and loss account and balance sheet. Example