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General Accounting Discussions: Balance sheet & P&L statement

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  1.  
    • CommentAuthorSimple
    • CommentTimeDec 17th 2007 edited
     
    Why do companies have Balance sheet & P&L statement? I read the article but my question is If Balance sheet is only for board members and P&L then why do we even have P&L statement. What i want to get is why do we have two different things? Also my company goes with Balance sheet Current Retained earnings and compare with P&L Actual Y to d. Then why do we have other information and why don't all the information in P&L not included in Balance sheet and vise versa?
    • CommentAuthoraccteacher
    • CommentTimeJan 18th 2008
     
    A profit and loss account is a list of all your income and expenditure whereas a balance sheet is a list of all your assets and liabilities.
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  3.  
    Profit and Loss accounts is the net operational results (Profit or Loss) of your business for a given period whereas Balance is a snapshot of your business at a specific point in time. Balance Sheet shows what your business owns and what it owes.

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