Profit and Loss account: Difference between revisions
imported>Doug Williamson (Link with Statement of profit or loss and other comprehensive income page.) |
imported>Doug Williamson (Reference to, and link with, International Accounting Standards.) |
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A net loss is a Debit in the Profit and loss account. | A net loss is a Debit in the Profit and loss account. | ||
Under International Accounting Standards the profit and loss account is superseded by the Statement of profit or loss and other comprehensive income. | |||
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* [[Financial statements]] | * [[Financial statements]] | ||
* [[Income statement]] | * [[Income statement]] | ||
* [[International Accounting Standards]] | |||
* [[Loss]] | * [[Loss]] | ||
* [[Profit]] | * [[Profit]] | ||
* [[Profit and Loss reserve]] | * [[Profit and Loss reserve]] | ||
* [[Statement of profit or loss and other comprehensive income]] | * [[Statement of profit or loss and other comprehensive income]] | ||
Revision as of 17:21, 19 December 2013
(P&L or PL).
1.
A primary financial statement – showing the revenues earned in a period matched with the expenditures incurred in the same period to arrive at a figure of net profit or loss.
Under the 'double entry' accounting convention, income items in the Profit and loss account are Credits (CR) and expenses are Debits (DR).
A net profit is a Credit in the Profit and loss account.
A net loss is a Debit in the Profit and loss account.
Under International Accounting Standards the profit and loss account is superseded by the Statement of profit or loss and other comprehensive income.
2.
Another name for the Profit and Loss reserve in the balance sheet.
Net profits or losses for the period in the Profit and loss account feed through in turn to the Shareholders' funds (cumulative retained profits or losses) in the 'bottom half' - reserves section - of the Balance sheet (as at the end of the period).
