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Profit and loss account

Why payment to creditors , receipt from debtors and drawings are not shown in profit and loss account..


Sri Varshini

Sri Varshini

CA Inter

575

16-Oct-20 20:34

27

Answers (4)

Best Answer

Creditors and debtors have done there transactions in last year or we can say in past and we prapare Profit and Loss Account for that particular years only, not for past year. We show incomes and expenditures or profit and loss in P & L and drawing is neither profi and incomes nor Expenses and Loss


Rahul Jaiswal

Rahul Jaiswal

CA Inter

30

17-Oct-20 23:26

because they are not items of income or expense.


Suraj Lakhotia

Suraj Lakhotia

Admin

17-Oct-20 08:11

because they are not items of income or expense.

Ok sir


Sri Varshini

Sri Varshini

CA Inter

575

21-Oct-20 23:25

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