Profit and Loss Account

It shows the net profit or net loss that the business has made from all the activities during a financial period.
The net profit (or loss) is determined by deducting all the expenses from all the incomes of the same financial period.
In practice, the trading account is combined together with the net profit and loss account into one report called comprehensive statement of income (formerly, trading, profit and loss account) . Format is as shown below:


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