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What is the difference between a Profit and Loss Account and a Balance Sheet?
Wiki User
∙ 15y ago
A profit and loss account reports the results of activity over a period of time, usually one year. A balance sheet reports the situation (assets, liabilities and equity) at a point in time. The Profit and Loss Statement reports (Revenue - Expenses) Net Income (Net Profit) and it accumulates throughout one fiscal (business) year and is restarted from zero at the end of the year. The Balance Sheet reports the value of the entity (person or business). Assets = Liabilities + Equity. Its accounts start from zero at the beginning and continue to accumulate until the business closes. For more information check the related link.
Wiki User
∙ 15y ago
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What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
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 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.
About projected balance sheet and profit and loss account?
how to prepare the forecast report of profit and loss account with balancesheet
What is the Difference between income statement and profit and loss account?
Both are sameIncome statement shows both operating and non-operating amounts. Revenue, Net profit/loss and profit per share. I think you are thinking of the Balance sheet that lists assets, liabilities and shareholders' equity.
Can a dormant account be closed and balance transferred to Profit loss account?
Can_a_dormant_account_be_closed_and_balance_transferred_to_Profit_loss_account
What is difference between P and L statement and income and expenditure statement?
Income and expenditure account is used by not for profit companies as they are formed for not for profit basis that's why they cannot use profit and loss account.
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
What are the reason where the balance sheet will not tally?
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.
Is profit and loss account given in trial balance a liability?
no
What is difference between non profit and not for profit?
There is no difference.
Difference between not for profit and non profit?
No difference.
