On the debit side(left side) of the profit and loss account the items recored are:
- any expenses
- Discount allowed
On the credit side(right side) of profit and loss account the items recorded are:
(a) Discount received
(b) Commission received
(c) Rent received
(d) Interest received
(e) Income from investments
(f) Profit on sale of assets
(g) Bad debts recovered
(h) Dividend received
(i) Apprenticeship premium etc.
When you have add everything , you have to add up the amounts and u can find out if it is a net profit or net loss . Net profit is the left is the amount is has lesser money then the right side and net loss is the opposite. :D
Just to sum up if it is an expenses record it one the left side and income/revenue on the right side
and if the income is more then the expenses it is a net profit if it is lesser it is a net loss :D
When you have add everything , you have to add up the amounts and u can find out if it is a net profit or net loss . Net profit is the left is the amount is has lesser money then the right side and net loss is the opposite. :D
Just to sum up if it is an expenses record it one the left side and income/revenue on the right side
and if the income is more then the expenses it is a net profit if it is lesser it is a net loss :D
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