why is the bank and cash figures in the balance sheet different from the profit for the year shown in the profit and loss account?
The balance sheet,reflecting the effect of economic activities of the organization, showing the property and financial position statically, at the balance sheet date. It is a financial picture of organization at a particular time. In the dynamics the organization activity characterizes the profit and loss account, for it reveals the connection between past and present reporting periods, showing the expense of what has been a change in the balance sheet. In this regard, the profit and loss account is called temporary calculation, and the balance sheet - a permanent settlement.