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Profit and Loss Statement

This document presents a statement of profit and loss for a company for a given year. It includes sections for total income, total expenses, profit before tax, and profit after tax. Notes are provided to explain key line items such as revenue from operations, other income, cost of materials consumed, changes in inventories, employee benefit expenses, finance costs, depreciation and amortization expenses, and other expenses.

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63 views2 pages

Profit and Loss Statement

This document presents a statement of profit and loss for a company for a given year. It includes sections for total income, total expenses, profit before tax, and profit after tax. Notes are provided to explain key line items such as revenue from operations, other income, cost of materials consumed, changes in inventories, employee benefit expenses, finance costs, depreciation and amortization expenses, and other expenses.

Uploaded by

bomdefuser
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Statement of Profit & Loss

For the year ended…………………

(As per Part II of Schedule III of Companies Act, 2013)

Particulars Note No. Amount


Revenue from operation (Net Sales)
Add: Other income

Total Income (A)


Less: Expenses
Cost of material consumed
Purchase of stock in trade
Change in inventories of finished goods, Work in progress and Stock in trade
Employee benefit expense
Finance cost
Depreciation and amortization expense
Other expenses

Total Expenses (B)


Profit before tax (A-B)
Less: Tax
Profit after tax

Notes:-

Revenue from operation = Revenue from sale of product – Returns + Sale of


scrap
Note: In case of Finance company following will be
revenue from operation:
 Dividend Income
 Interest Income
 Net gain/loss on sale of investment
 Revenue from other financial services
Other Income = Dividend Income + Interest Income + Net gain -
loss on sale of investment + Revenue from other
financial services + Rent Received + Discount
Received + Refund of income tax + Commission
received + Transfer fee + Creditors written back +
Excess of provision of bad debt + Profit on sale of
fixed assets + Revenue from consultancy
Cost of Material Consumed = Opening stock of RM + Purchase of RM - Closing
stock of RM
Note: Materials such as stores, fuel, spare parts
etc. are shown as other expenses as they do not
enter physically in the composition of finished
goods.
Change in inventories = Finished goods (opening stock – closing stock)
+ Work in progress (opening stock – closing stock)
+ Stock in trade (opening stock – closing stock)

Employee benefit expense = Wages, Salaries, Bonus and Leave encashment


+ Contribution to Provident fund, Gratuity and
Superannuation fund + Staff welfare expenses
(Food allowances, Medical Allowances, ESOS,
ESPP etc..)

Finance Cost = Interest Expenses (Interest paid on loan, Interest


paid on overdraft and cash credit, Interest paid on
debentures/ bonds/ public deposits) + Other
Borrowing Cost (Discount or loss on issue of
Note: Bank charges are not included in finance debentures, premium payable on redemption of
cost as they have no connection with loan but for debentures, Guarantee charges, Commitment
availing service provided by the bank. charges loan processing charges)

Depreciation and Amortization Expenses = Depreciation + Amortization(Writing off


Intangible assets)

Other Expenses = Consumption of loose tools, power, fuel etc. +


Carriage inward/outward + Freight +
Note: All expenses which are not classified under Manufacturing expenses + Rent, rates and taxes +
any other head are part of other expenses. Insurance (less prepaid, if any) + Discount allowed
+ Commission allowed + Bad debts + Repairs +
** Adjustment of Prepaid (Subtracted) and Trade expenses + Bank charges + loss on sale of
Outstanding (added), is to be done in a particular fixed assets + Fee paid (any) + Fictitious assets
head. written off during the year etc..

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