Why profit and loss A/C instead profit or loss A/c

This query is : Resolved

A J Sankar (Querist)
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10 November 2008 Why do we call it as Profit and loss A/c ?Because it shows either profit or loss only. Can't we call it as Profit or loss Account?

CA. AmirSavant

CA. AmirSavant (Expert)
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10 November 2008 Profit and Loss A/c gives us a net effect of all the profits earned and losses incurred in a year. The word "and " denotes the fact that it consists of series of profits as well as losses before we arrive at a net profit or net loss. Therefore, it is incorrect to call it Profir or loss a/c since its is composition of both the elements.

A J Sankar

A J Sankar (Querist)
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11 November 2008 Thank Q sir

But it also shows incomes and expenses.
Then why should we not call it as income and expenses account.

In fact every profit can be call as part of income(as excess income over exp) but not every income as profit.

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