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Why price difference gl account is operates in p&l account

Updated May 19, 2018

hi

can anubody tell me why price difference gl account is operates in p&l account

Comments

  • 05 Nov 2012 6:48 pm Guest
    Any price difference results either a loss or profit. So PRD A/C is placed in PL A/c. OK
  • 17 Jan 2013 12:39 am maneesh
    If you want to maintain seperate currency for that GL then exchange rate difference will come because the conversion rate
  • 10 Oct 2013 8:42 am Guest
    when ever u r posting foreign currency there may be price difference so price difference account is maintained to know whether u have gain or loss .

    example : u have taken loan from bank of America 1lack and u r going to pay by installment by every 15 days , loan taken on 30.11.2013 first installmnet you have to pay 1000$ on 15.12.2013 on the date dollar value is 60rs you have to pay 60000rs as ist installment ,again on 30.12.2013 when u r paying second installment dollar value has gone up by 2rs now u have to pay 12000 rs as second installment so now u have paid 2000 rs extra and that comes under price difference a/c as a part of periodic processing
  • 14 Sep 2014 11:16 am Guest

    actully as per the accounting rules incomes,profits are debited and expencess,losses are credited, these foure concepts comes in p&l account while preparing the final accounts. price difference if it is loss it will come in credit side, if it is profit it willl come in debit side. it is compleatly related to p&l account

     
  • 04 Mar 2015 3:47 pm Abhi Khandavilli

    As per Accounting terminology as of IAS (i.e.Indian Accounting Standards) the P&L Account have the below terminology:

    1) Expenses, Losses must be in Debit to P&L A/c

    2) Profits, Gains must be in Credit to P&L A/c

     
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