Question

explain the ascertainment of profit and loss ​

Answer 1

Ascertainment of Profit or Loss: Method # 1. Statement of Affairs/Increase in Net Worth Method: Profit is ascertained by comparing the capitals between two accounting periods, viz., capital at the beginning and capital at the closing, when double entry system is not followed.

Answer 2

Answer:

Every business firm needs to prepare the financial statements in order to ascertain the results of its financial operations. It needs to know whether the business is yielding profits or not and also it's financial position at the end of the year.

Explanation:

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