Question

any balance in the profit and loss account of the purshasing firm will be transferred to​

Answer 1

Answer :

Balance sheet.

Any balance in profit and loss account of the purchasing firm will be transferred to Balance Sheet of the firm ( final accounts)

The Balance of Profit and Loss account is called Net profit and Net loss. If there is loss in Profit and Loss account it is called Net loss and Profit then, it is called Net profit.

Profit and Loss account :

After ascertaining the gross profit of the business from doing Trading account, The business man will be interested to know the net result of the business at the end of the Accounting period. For this purpose Profit and Loss account is prepared.