1, "loss" refers to costs, expenses and taxes, such as operating costs, management expenses, financial expenses, sales expenses, asset impairment losses and other subjects, while debit records increase.
2 "profit" refers to all kinds of income, subsidies, investment income, etc. , such as operating income, non-operating income, investment income and other subjects, and the credit record increased.
3. All profit and loss accounts have no balance at the end of the period after being carried forward from the "profit of this year" in the opposite direction at the end of the period.
: The previous year's profit and loss adjustment account also belongs to the profit and loss category, but because it accounts for the profit and loss adjustment of the previous year, it is not the profit and loss of this year. Therefore, according to the provisions of the enterprise accounting system, the balance of this account cannot be transferred to the profit account of this year at the end of the period, but should be transferred to the profit distribution account. After carrying forward, the ending balance of this course is zero.
References:
Profit and loss account-Baidu Encyclopedia