Question

formula for statement for profit and loss

Answer 1

The profit and loss statement will summarizes the revenues and expenses generated by the company over the entire reporting period. The profit & loss statement is also known as the income statement, statement of earnings, statement of operations, or statement of income.

The basic equation on which a profit & loss statement is based is Revenues – Expenses = Profit.

Accounting profit is the difference between total revenue and total thus (accounting profit =total revenue - total cost). So the formatt for calculating net profit/loss. =[sales-cost of goods sold+other incomes - total expenses]. The total revenue here is your (sales+other incomes). And your total expenses here is you (cost of good sold and total expenses). On the balance sheet it becomes profit =(closing capital-opening capital +drawings -loan)