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Prepare the Format of Statement of Profit and Loss and Explain Its Items. - Accountancy

Numerical

Long Answer Question

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

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Solution

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. ExpensesThese 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.
  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 3 Financial Statements of a Company
Long Answer Question | Q 4 | Page 163
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