Question

What is the difference between profit and loss account and balance sheet?

Answer 1

Answer:

the main difference between p/l a/c and balance sheet is that the p/l shows all the income and the expense of current financial year and net profit or loss is calulated and balnce sheet is prepare after p/l ac it shows the all assets and liabilities of the business the net profit or loss calculated in p/l ac will adjusted in capital in balance sheet