17 November 2012
previously we were debiting or crediting the profit and loss account for expenses and revenues. Now we have statement of profit and loss; does it mean that we shall have to debit or credit the statement of profit and loss instead of profit and loss account; or profit and loss appropriation account.
19 November 2012
There is a difference between Profit & Loss account and Profit & Loss Statement. P & L Statement is a part of financial statements whereas profit and loss account is a nominal account. Profit and loss statement is for better presentation of P&L account. There is no need to add the word statement while transferring expenses and incomes to profit and loss account.
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