?WHAT IS THE MAIN DIFFERENCE BETWEEN PROFIT & LOSS A/C AND BALANCE SHEET
Profit and loss account is prepared to know the profitability of the business. At the end of accounting period, a business prepares profit and loss account to ascertain the profit or loss of the business. All ledger accounts of revenue nature are summarized in profit and loss account.

Balance Sheet is a list of the accounts having debit balance or credit balance in the ledger. On one side it shows the accounts that have a debit balance and on the other side the accounts that have a credit balance. The purpose of a Balance Sheet is to show a true and fair financial position of a business at a particular date. Every business prepares a balance sheet at the end of the accounting year.

So we can say that Profit & Loss A/c shows the net result (net profit or net loss) of the business while a Balance Sheet is prepared to disclose the true financial position of the business at a particular date.