Give five differences between Profit and Loss Account and Income and E – InterviewSolution

InterviewSolution

1.

Give five differences between Profit and Loss Account and Income and Expenditure Account.

Answer»

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.

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