BASIC ACCOUNTING : PROFIT & LOSS ACCOUNT

PROFIT AND LOSS ACCOUNT IS PREPARED TO ASCERTAIN THE NET PROFIT OF THE BUSINESS CONCERN FOR AN ACCOUNTING PERIOD.

DEBIT SIDE :

OPERATING EXPENSES
THESE EXPENSES ARE INCCURED TO OPERATE BUSINESS EFFICIENTLY

NON - OPERATING EXPENSES
THESE EXPENSE ARE NOT DIRECTLY CONNECTED TO DAY TO DAY OPERATION OF THE BUSINESS CONCERN

CREDIT SIDE :

OPERATING INCOME
INCOME WHICH GENERATED FROM BUSINESS ACTIVITY

NON - OPERATING INCOME
INCOME WHICH GENERATED FROM OUT OF BUSINESS CONCERN LIKE INCOME FROM SALES OF FIXED ASSET AND TAX REFUND