Balance sheet and profit and loss account. You can refer to it if you want to. What are the differences of the balance sheet and profit and loss statement. The main difference between a balance sheet and a profit and loss statement is the nature and scope of their financial contents.
Balance sheet the balance sheet focuses on long term and current assets long term and current liabilities and owners capital contribution. Profit and loss account this is often called the pl for short and it shows your businesss income less its day to day running costs over a given period of time often a year month or quarter. A balance sheet simply provides a snapshot of how your company is doing at a particular moment in time rather than over a period of months as a profit and loss sheet would do.
To support you can donate via paytm by following this link httpp ytmpdimbe8d7 or via upi at tct at upi a brief discussion on profit and loss account with balance. The relationship between balance sheets and profit and loss accounts the profit and loss pl account summarises a business trading transactions income sales and expenditure and the resulting profit or loss for a given period. It is a statement of assets and liabilities.
The profit and loss statement and the balance sheet are two of the three financial statements that companies issue regularly. You can refer to it if you want to. Difference between balance sheet and profit loss account january 16 2015 by surbhi s 1 comment balance sheet or otherwise known as position statement is a statement which shows the financial position of the company on a specific date.
It is prepared before the balance sheet. Financial statements provide an ongoing record of a companys. It is an account.
It is the second stage of final accounts. It is the last stage of final accounts. It is prepared after the profit loss account.
Profit and loss account.