Profit and Loss account

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(P&L or PL or PNL).


Historically, 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Under International Accounting Standards the profit and loss account is superseded by the Statement of profit or loss and other comprehensive income.


Historically, 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).

See also