Guruprasad.R (Team Lead) (57 Points)
13 April 2016Hi All,
Please help me to understand as in which and all situations P&L account will be debited or credited in journal entries. As below are the examples where I have come accross using P&L debit and P&L credit:
P&L debit
Provision for discount on Debtors account ..CR.
P&L debit ..DR
Prov for Exp account ...Cr
ACCOUNTANT
(Student)
(559 Points)
Replied 14 April 2016
An expense in naturally debited to P&L a/c, when a provision is being created for such expense, P&La/c is naturally debited with such provision., by making a simply adjustment entry to the ORIGINAL EXPENSE a/c.,like a chain cut process.,
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