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Brief overview about the concept

Let’s discuss in brief some major differences between Balance sheet and profit loss account as dictated by our experts:

  • Balance sheets are the major proof of all assets and liabilities associated with the company and thus are prepared for particular date which is generally financial year end. Profit and Loss account, on the other end are prepared for a particular period in order to analyze the statement for a shorter period of time.
  • Balance sheets depicts assets and liabilities of the firm and P&L accounts depicting revenue and expenses shared by the firm respectively
  • Balance sheets are the answers to analyze the financial positioning of the firm whereas P&L accounts depict the financial performance of the entity.

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