05 April 2013
Sir, It is my simple and long back doubt.Why we are using Profit and Loss account instead of Profit or Loss account.I thing second one is more appropriate.Kindly consider my query .I am expecting a reply soon.
05 April 2013
if we called profit or loss a/c that means no difference between profit and loss why because the two are taking either debit or credit only we will take one side, that's against the accounting principals . if we called profit and loss a/c we will treat the separably in debit and credit side so we called as profit and loss account is correct as per my knowledge.
05 April 2013
According to my view and knowledge Profit and Loss account is correct because of it considering both proift and as well as loss items thus it is the correct word of profit and loss account as well as at final we considering only one either net profit or net loss so here will calling as net profit or net loss but not calling net profit and net loss because of we didn't considering both we considering only one so separating it with "OR". But in the the account we considering both profit as well as loss items so we considering and separating it with "AND".
For example: this example is for better understanding purpose only. Assume you have to introduce Mr.X, Mr.Y as the Board of members at a time then we introduce as follows " Mr.X and Mr.Y both are the board of directors of Z co" here we using "AND" because of we considering both pearsons but we not using "OR".
In case if you considering any one of the Mr.X,Mr.Y to elect as board of director then we introduce "we proposing Mr.X or Mr.Y as board of director please vote for your proposal" Here we considering only one pearson so we using "OR".
Thus like P&L account considers the both Income(profit) as well as Expenditure(Loss) items so we called it as Profit and Loss account at final result we considering only one either net profit or net loss so we called it as Net profit or Net Loss.
The above is my analysis and according to my knowledge P&L account is correct and appropriate word.
CAclubindia
