Give the specimen format of Profit and Loss Account of a Company as per the Revised Schedule VI (2011) of the Companies Act, 1956 with imaginary numbers
Answers
Explanation:
Profit and Loss statement is basically a financial statement also known as the income statement. It basically lists the costs and revenues that have been incurred in a fixed period of time.
It is related to preparation of a balance sheet where all the expenses or profits are listed and then a summary is taken out. Profit is taken as positive and anything that reduces, or loss is negative;
Example;
Increase in inventories = 500
Decrease in the bank balance = -600
Increase in payable = 1400
Overall impact = 500 - 600 + 1400 = 1300
Overall 1300 has increased in account , which is the net profit
Profit and loss account represents the financial records which elaborates all the expenses and revenues of an enterprise.
- All companies were universally referred to in updated Schedule VI for the financial statements to be prepared for the financial year 2010-11 and onward.
- The format of P&L can be referred to as -
1. Revenue from operations - 5,000
2. Other Income - 6,000
3. Total Revenue (1 + 2) - ( 5,000 + 6,000 = 11,000)
4. Expenses:
Cost of materials consumed - 100
Purchase of Stock-in-Trade - 100
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade - 200
Employee benefit expense - 100
Financial costs - 200
Depreciation and amortization expense - 200
Other expenses - 100
Total Expenses - ( 1000)
5. Profit before exceptional and extraordinary items and tax - 15,000
6. Exceptional Items - 5,000
7. Profit before extraordinary items and tax (V - VI) ( 15,000 - 5,000 = 10,000)
8. Extraordinary Items - 2,000
9. Profit before tax (VII - VIII) ( 10,000 - 2,000 = 8,000)
10. Tax expense:
(1) Current tax
(2) Deferred tax
11. Profit(Loss) from the perid from continuing operations
12. Profit/(Loss) from discontinuing operations
13. Tax expense of discounting operations
14. Profit/(Loss) from Discontinuing operations (XII - XIII)
15. Profit/(Loss) for the period (XI + XIV)
16. Earning per equity share:
(1) Basic
(2) Diluted