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Income Statement Format

The document outlines the standard format for an income statement. It shows the calculation of gross profit by subtracting cost of goods sold from net sales. Operating expenses like administrative, selling, distribution and finance expenses are then deducted to calculate earnings before interest and tax (EBIT). Interest expenses are further deducted to calculate operating net profit. Non-operating income and expenses are added/deducted to calculate net profit before tax. Taxes are then deducted to calculate net profit after tax.

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Shruti Mohan
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© Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online on Scribd
435 views

Income Statement Format

The document outlines the standard format for an income statement. It shows the calculation of gross profit by subtracting cost of goods sold from net sales. Operating expenses like administrative, selling, distribution and finance expenses are then deducted to calculate earnings before interest and tax (EBIT). Interest expenses are further deducted to calculate operating net profit. Non-operating income and expenses are added/deducted to calculate net profit before tax. Taxes are then deducted to calculate net profit after tax.

Uploaded by

Shruti Mohan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Income Statement Format

Sr
No Particulars Rs. Rs. Rs.
1 Gross Sales     xxx
2 Less: Returns and allowance     xxx
3 Net Sales (1-2)   xxx  
4 Less: Cost of goods sold      
  Opening stock   xxx  
  Purchases   xxx  
  Direct expenses   xxx  
  Direct Wages   xxx  
  Depreciation on machinery   xxx  
  Depreciation on factory building   xxx  
  Less: Closing stock     xxx
  Less: Sales of scrap   xxx xxx
  Cost of goods sold (a+b+c+d+e+f-g)     xxx
5 Gross profit (3-4)     xxx
  Add: Operating Income:      
  Discount on purchases   xxx  
  Discount received   xxx xxx
  Recovery of bad debts   xxx xxx
        xxx
         
  Less: Operating Expenses:      
(I) Administrative Expenses:      
  Salary xxx    
  Insurance xxx    
  Printing and stationery xxx    
  Office expenses xxx    
  Legal expenses xxx    
  Audit fees xxx    
  Depreciation xxx xxx  
(II) Selling & distribution expenses:      
  Commission xxx    
  Advertisements xxx    
  Salesman's salary/Commission xxx    
  Distribution expenses xxx xxx  
(III) Finance Expenses:      
  Interest on debentures xxx    
  Interest on shor-term loans xxx    
  Interest on bank overdraft xxx    
  Bad debts/R.D.D xxx xxx  
  (I)+(II)+(III)     xxx
  Earnings before interest & tax (EBIT)     xxx
  Less: Interest on long-term borrowings     xxx
  OPERATING NET PROFIT     xxx
  Add: Non-operating income:      
  Profit on sale of assets/investments   xxx  
  Interest on investments   xxx xxx
        xxx
  Less: Non-operating Expenses:      
  Loss on sale of assets/investments     xxx
  NET PROFIT BEFORE TAX     xxx
  Less: Provision for tax     xxx
  NET PROFIT AFTER TAX     xxx

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