What is profit and loss account and why we make it Share with your friends Share 1 Krishna answered this It is an account to which incomes and gains are credited and expenses and losses are debited,so as to show the net profit and loss over a given period. 3 View Full Answer Krishna answered this It is an account to which incomes and gains are credited and expenses and losses are debited,so as to show the net profit or loss over a given period. 1