Question

what is the difference between profit and loss and profit and loss appropriation

Answer 1

Difference between Profit and Loss A/c and Profit and Loss Appropriation A/c:S.NoProfit and Loss AccountProfit and Loss Appropriation Account1It is prepared after Trading A/c.It is prepared after Profit and Loss A/c.2It shows the Net Profit of the year.It shows how Net Profit is appropriated (distributed).3This account does not have opening and closing balances.This account may have both opening and closing balances.4Items debited to this account are all expenses (charge against profit).Items debited to this account are appropriations.
 

Answer 2

Profit and loss

Wherever we need any article in our daily routine we go to the market where shopkeeper sells a lot of articles the shopkeeper used is article that directly from a manufacture or through wall sabre.

The Prince at which an item is out is called its cost price it is abbreviated as CP.

Sometimes, there are additional expenses also on transport composition labour and so on such expenses are called overhead expenses overhead expenses are included in the cost price of the item.

•Total cost price = original cost + overhead expenses

For example, acela purchase greater for ₹ 25000

and spend ₹300 online labour and transport.

•Cost price of the the refrigerator =₹25000+₹300=₹25,300

The price at which an item is sold is called its selling price. It S rated as SP if the selling price is greater than the cost price the shopkeeper earns a profit.

•Profit percentage=(profit/Cost price×100)%

CP=SP×100/(100+profit%) when SP and profit % are given.

SP=100+profit%/100×CP

If the selling price is less than the cost price of shopkeeper insurance lows.

•Loss=cost price -selling price =CP-SP

Loss %=(Loss/Cost price×100)%

CP=100/100-loss%×SP

SP=100-loss%/100×CP