DIFFERENCE BETWEEN PROFIT & LOSS ACCOUNT AND BALANCE SHEET

PROFIT & LOSS ACCOUNT	BALANCE SHEET
Objective of preparing P&L A/C to ascertain the Net profit cost it loss of the business during the year	The objective of preparing balance sheet is to know financial position of the business on a specific date
Is an account having debit and credit as such “TO” and “BY” are used recorded in the P & L A/C	Balance sheet is a statement and hence “TO” and “BY” are not used
Revenue expenditure and Incomes are accorded in the P & L A/C	Capital Incomes and expenditures are shown in the balance sheet
Balancing figure of this Account either net profit or Net loss	Balance sheet will not show any balancing figure. A total of liabilities and Assets side should always be equal