Outrageous Difference Between Voyage Account And Profit And Loss Account

Excess of credit side of Voyage Account over its debit side is profit on the voyage.

Difference between voyage account and profit and loss account. The balance from the Profit and Loss Account irrespective of whether it is a net profit or net loss is finally transferred to the balance sheet under capital account. Profit and Loss Account will show a net profit when the credit side amount is more than the debit side and will show a net loss when the debit side is more than the credit side. It is prepared after the trading account.

Profit and loss account dont have any opening or closing balance as it is prepared for a specific accounting period. Profit and loss account is prepared by business whose aim is to earn money. Credit balance of this account is known as Net profit and added to opening capital.

The main object of this account is to calculate the net profit or net loss. Here we detail about the difference between trading account and profit and loss account. What is Profit and Loss Account.

Profit And Loss Account. Excess of debit side of Voyage Account over its credit side is loss on the voyage. Credit balance is known as excess of income over expenditure or surplus and added to opening capital fund.

This account is prepared by non-trading concerns which do not seek to earn profit. Prepare by business undertakings. PL account is a component of final accounts.

Profit and loss account or Income statement is prepared to find out the Net Profitloss of the business for the particular accounting period. It ascertains net profit earned or loss sustained by the business. The account depicts the financial production of the enterprise in a specific time.