Why is it that P & L is called P & L account - a "Account"
and
Balance sheet - a "Sheet"?
Why not vce versa?
Thanks
Anil.
2 Replies
Goongan
(Student)
(450 Points)
Replied 06 April 2009
Since on preparing profit & loss account we transfer the ledger to profit & loss account by passing transfer entry so rule of debit & credit is followed that’s why it is called “Account”.
But it is not in case of Balance Sheet no any Account is transfer also rule of debit & credit is not followed that’s why it is called “Sheet”
Sumit Jain
(CA)
(4760 Points)
Replied 06 April 2009
partly agree
balance sheet is known as a sheet
bcoz
it shows the whole position , condition, picture of an enterprises by showing balances on a sheet of a paper
thats why known as a sheet
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