It is the summary of such accounts which effect the profit and loss of your business. These are prepared by transferring from the trial balance all Nominal Accounts and Accounts relating to Goods ( account type Income or Expenditure) by means of closing entries. All remaining Accounts i.e. Real and Personal, Relating to properties, assets, debtors and creditors ( account type Asset or Liability ) are shown in the balance sheet.
In order to know the financial position of your business or the effect of various accounts on you business these accounts are grouped at one place. Items increasing profit (revenue) or account type Income are put on credit side. Items decreasing profits ( losses and expenses) or account type expenditure are put on the debit side. The balance is either net profit or net loss.
This Income Statement is normally divided into two parts - first part is called Trading Account and the Second Part is called Profit and Loss Account.
Software for Inventory Control - Click to find complete details
HiTech SSAM Also Known as Sales, Stock and Accounts Manager is an Easy and Helpful Invoicing Application for Creating Invoice, Billing, Inventory Management and Accounting to Your Complete Satisfaction
Off-the-shelf software solutions for various segments like Business, Trading, Industry, Hotel, Hospital, Medical Store, Petrol Pump, Automobile dealer, Newspaper, Commodity Broker & VAT Accounting. Customization available at nominal additional cost.
ERP Accounting, Billing, Inventory Control Software