Difference between Profit & Loss Account and Balance Sheet

The following differences are observed between the Profit & Loss Account and Balance Sheet.

Profit and Loss Account

Balance Sheet

It is an account.It is a statement of assets and liabilities. it is not an account.
It is the second stage of Final Accounts. It
is prepared before the Balance Sheet.
It is the last stage of Final Accounts. It is prepared after the Profit & Loss Account.
It is prepared for a period of time. So its heading will be: Profit & Loss A/c for the year ended 31.12.2019.It is prepared at a point of time. So its heading will be: Balance Sheet as on 31.12.2019.
Its object is to ascertain true profit or loss of business.Its object is to ascertain the true financial position of the business.
Also Check:  Profit and Loss Account

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