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Question -

Prepare the format of statement of Profit and Loss and explain its items.



Answer -

Format of Statement of Profit and Loss- As per the REVISED SCHEDULE VI

Statement of Profit and Loss

for year ended...

S. No.

Particulars

Note No.

Figures for the Current Year

Figures for the Previous Year

I

Revenue from Operations

 

 

 

II

Other Income

 

 

 

III

Total Revenue (I + II)

 

 

 

IV

Expenses:

 

 

 

 

Cost of Material Consumed

 

 

 

 

Purchase of Stock-in-Trade

 

 

 

 

Changes in inventories of finished goods

 

 

 

 

Work-in-progress and Stock-in-Trade

 

 

 

 

Employee Benefit Expenses

 

 

 

 

Finance Cost

 

 

 

 

Depreciation and Amortisation Expenses

 

 

 

 

Other Expenses

 

 

 

 

Total Expenses

 

 

 

V

Profit before exceptional and extraordinary items and tax (III – IV)

 

 

 

VI

Exceptional items

 

 

 

VII

Profit before extraordinary item and tax (V – VI)

 

 

 

VIII

Extraordinary Items

 

 

 

IX

Profit Before Tax (VII – VIII)

 

 

 

X

Tax Expenses

 

 

 

 

(1) Current Tax

 

 

 

 

(2) Deferred Tax

 

 

 

XI

Profit/(Loss) for period from continuing operations (IX – X)

 

 

 

XII

Profit/ (Loss) from discontinuing operations

 

 

 

XIII

Tax expenses of discontinuing operations

 

 

 

XIV

Profit/(Loss) from discontinuing operations (after Tax (XII – XIII)

 

 

 

XV

Profit (Loss) for the period (XI + XIV)

 

 

 

XVI

Earning Per Equity Shares

 

 

 

 

(1) Basic

 

 

 

 

(2) Diluted

 

 

 

 

 

 

 

 

I. Revenue from Operations- It refers to the revenue earned from the basic operating business activities of an organization. For Non-financing companies, it consists of the following.
• Sale of Products
• Sale of Services
• Other Operating Revenues
For financing companies, revenue from operations includes the following.
• Interest
• Dividends
• Other Financial Services
 
II. Other Incomes- This income includes the income earned other than from the operating activities of a business. It comprised of the following incomes.
• Interest Income (in case of Non-Financing Company)
• Dividend Income (in case of Non-Financing Company)
• Net Gain or Loss on Sale of Investments
• Other Non-Operating Incomes (i.e. after deducting expenses directly related to such income)
 
III. Expenses- These can be bifurcated in the following given below types.
• Cost of Materials Consumed- It includes all the materials consumed during the process of manufacturing. It can also be calculated with the help of the given below formula.
Material Consumed  = Opening Stock of Raw Material + Purchase of Raw Material – Closing Stock of Raw Material
 
• Purchase of Stock-in-Trade- It includes all the goods purchased by a trading concern with an intention of resell.
 
• Change in Inventories, Work-in-Progress and Stock-in-Trade- It is difference of  opening and closing balance of inventories (stock), work-in-progress and stock-in-trade.

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