Profit and Loss Account is a standard financial document that summarizes a company’s revenue and expenses for a specific period of time, usually one quarter of a fiscal year and the entire fiscal year.
It is important that both investors and company managers be able to read and understand this document in order to understand the company’s financial condition. For a description of the line items typically found in a company’s income statement, read How to Read an Income Statement. You can also see a Sample Income Statement there.
Example Profit and Loss Statement
|Less||Cost of Goods Sold||$||426,200||42.6%|
|Accounting and legal fees||$||11,700|
|Interest and bank charges||$||27,300|
|Printing and stationary||$||8,700|
|Rent for premises||$||74,300|
|Repairs and maintenance||$||21,100|
|Vehicle operating costs||$||20,000|
|Wages and salaries||$||223,500|
|All other expenses||$||14,100|
|Equals||Net Profit (BOS)||$||85,500||8.6%|
BOS = Before owners salary
Related Accounting Paper:
Popular Accounting Paper:
Abstract Cost and Management Accounting practice helps an organization to survive in the competitive, ever-changing world, because it provides an important competitive advantage for an organization that guides managerial action, motivates behaviors, supports and creates the cultural values necess.....
The Recording Process are entering transactions in the general journal and posting them to the correct general ledger accounts is time consuming. In the general journal, a simple transaction requires three lines—two to list the accounts and one to describe the transaction. The transaction must .....
Introduction Various approaches have applied over time to the formulation of an accounting formulation theory. Some of these approaches are known as “traditional” approaches, because they are characterized by the absence of a vigorous process of verification in the attempt to develop an accou.....
The project deals in “account receivable management at Tata Steel”. Account receivable management is one of the most important aspects of an organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. This report brie.....
1.1 Introduction: The internship program of BBA students of Department of Marketing, Institute of Business Studies, DarulIhsanUniversity, is an imputing part of the BBA program, 3 credit hours are for this internship program, out of 135 credit hours of the program. The program is for 3 m.....