Question

How do I make a profit and loss account on account​

Answer 1

Answer:

I don't know how to make it....

Answer 2

Explanation:

Step 1: Calculate revenue

The first step in creating a profit and loss statement is to calculate all the revenue your business has received. You can obtain current account balances from your general ledger such as cash and current accounts receivable balances.

If you’re creating a monthly profit and loss statement, you’ll include all of the revenue received in that time frame, whether your business has collected that revenue or not. If you’ve chosen to run a quarterly statement, just add up the revenue received in that three-month time frame.

When calculating revenue, be sure to include all revenue received, whether it’s from selling products and services or from selling your old printer to the business next door.

Step 2: Calculate cost of goods sold

Your cost of goods sold is an important part of any profit and loss statement. If you’re selling wallets, you’ll have to include the cost of purchasing the wallets from the manufacturer.

If you’re making the wallets, you’ll have to include the materials and supplies needed to make them. If you’re selling services, you need to include the cost of your time or your employee’s time that provided the service.

Step 3: Subtract cost of goods sold from revenue to determine gross profit

Once you have calculated your revenue and your cost of goods sold, you’ll just need to subtract the cost of goods sold to arrive at your gross profit number. Gross profit is the profit your business has earned from selling your products and/or services.

Revenue - Cost of Goods Sold = Gross Profit/Loss

Step 4: Calculate operating expenses

The next thing you need to do is calculate all of your operating expenses. Operating expenses include rent, travel, payroll, equipment, utilities, and postage.

8 steps to creating a profit and loss statement

Step 5: Subtract operating expenses from gross profit to obtain operating profit

Once your operating expenses have been calculated, you’ll want to subtract that total to obtain your total operating profit. This will give you your total operating profit or loss.

Gross Profit - Operating Expenses = Operating Profit/Loss

Step 6: Add additional income to your operating profit

If you have any additional income not included in your revenue totals above, such as interest income or dividends from investments, you’ll want to include them here. Once added to your operating profit, the total is earnings before interest, taxes, depreciation, and amortization, otherwise known as EBITDA.

EBITDA = Operating Profit + (Interest Income + Dividends Earned)

Step 7: Calculate interest, taxes, depreciation and amortization

The next step is to calculate any interest payments, taxes due, as well as depreciation and amortization expenses.

Step 8: Subtract interest, taxes, depreciation, and amortization expenses from EBITDA to obtain net profit

Your final step is subtracting interest, taxes, depreciation, and amortization expenses to arrive at your net income, or net profit.

Net Profit/Loss = EBIDTA - (Interest + Taxes + Depreciation)

Mark me as brainliest