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Yes it is. For partnerships, their P&L account can be divided into 2 parts, the normal P&L account and also the P&L appropriation account. once profit and loss account is prepared to do some adjustment with the net profit , predecided by the management, a separate account is opened named profit and loss appropriation account. :) I LOVE JUSTIN BIEBER
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
"What are the limitations of profit and loss account?"
Profit Investment Management was created in 1996.
Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage?"
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
Leverage ratios are used to find out that how much earnings has effects on overalll cashflows and profit of business.
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
Debit balance of Profit & Loss Account represents "Loss"
You can learn about non-profit debt management from New Ride Loan, Pro Sights Speciality, My Financial Goals, Money Management, Non Profit Debt Center, and from the Debt Management Group.