What are the features of P&L Account?

Features of P&L Account.

• It is the second stage in the preparation of the final accounts.
• It relates to a particular accounting period and is prepared at the end of that period.
• Accural basis of accounting is followed in the preparation of this account.
• This account is credited with the gross profit and income from other sources and debited with indirect expenses and losses.
• The balance of this account is the net profit or net loss.
• The capital of the owner is increased or decreased by the balance of this account .