| Profit and loss A/C | Income and Expenditure |
| 1. The main object of this account is to calculate the net profit or net loss. | 1. The main object of income and expenditure account is to ascertain surplus or deficit |
| 2. This account is prepared by trading organisation which seek to earn profit. | 2. This account is prepared by non-trading concerns which do not seek to earn profit |
| 3.This account is prepared on the basis of Trial Balance. | 3. This is prepared on the basis of Receipts and Payments account and other information |
| 4. The Balance of this account shows surplus or deficit. | 4. The balance of this account shows net profit or net loss. |
| 5. This account contains indirect gains and indirect expanses. | |
