Success account

In profit and loss accounts are in business accounting to the income statement depth (P & L) accounts of financial accounting (as opposed to the stock accounts ). Only business transactions that affect profit or loss are posted to profit or loss accounts, regardless of whether they are profits or losses. You collect all expenses and income from a billing period , separated by expense and income type . The balance of a profit and loss account is posted to the profit and loss account as part of the year-end closing work. In contrast to the inventory accounts, profit accounts are opened every year with a balance of zero. They are sub-accounts of equity.

There are two types of success accounts:

Expense accounts

There, the expenses of are the company acquired, for example, wages and salaries , depreciation , advertising or expenses for raw materials , consumables and supplies . Expenses are always posted on the debit side of the account as they reduce equity.

Income accounts

All income generated by a company is recorded in these accounts. These can arise, among other things, through the provision of services, interest or rental income. Income is always posted on the credit side of the account as it increases equity.