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Profit and loss

Mohit Gupta (article) (164 Points)

24 February 2019

why we write profit & loss account but not write profit or loss account ?

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6 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 25 February 2019

since p&l is a nominal account we debit all exp and losses and credit all gains and income.that's why termed as profit and loss account

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Mohit Gupta (article) (164 Points)
Replied 25 February 2019

But u describe a type of account, not clear the profit & loss instead of profit or loss

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 25 February 2019

like you prepare a income & expenditure account because you debit and credit income and expenses to this account so it's called a I,&E account.same way profit and loss account

Mohit Gupta (article) (164 Points)
Replied 25 February 2019

But at a single time profit or loss is come?

kajol (Executive) (201 Points)
Replied 25 February 2019

From p & l account we get profit or loss figure for a particular period. If you observe we get both from this account itself. That's why it is named as p&l account. Remember both are mutually exclusive.

In case if I call it as Profit or loss account …then it implies that we can find only Profit Isn't it ?

In contrary we can find both out of P and L acc. But only they are mutually exclusive.

The word "and" denotes that it consists of items of profits (income) as well as losses (expenditure) before we arrive at net profit or net loss.

Therefore, it is called Profit and Loss A/c and not Profit or Loss A/c.

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