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Profit and Loss Statement. Introduction. Balance sheet shows health of the organization. Income statement also called as profit and loss statement (P&L), gives company's financial statement for particular period.
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Introduction • Balance sheet shows health of the organization. Income statement also called as profitand loss statement (P&L), gives company's financial statement for particular period. • This shows if the organization has made profit or loss during particular period. • This slide demonstrates in a simpler manner how profit can be calculated
Example of profit and loss statements Case MrPatil started poultry as a side business with 102 birds. He started business with his own saving of Rs.5000/-. Out of 102 birds, in one month, 7 birds died
Expenses • First batch of birds, following were his expenses as shown in table below Total 2040 rupees
Sales • Total Weight of birds were averaging 1.8 kgs • Due to mortality factor, MrPatil has 95 birds • Purchasing rate in market is 15 rupees per kg • Thus Sales in rupees can be calculated as
Profit Total Profit is • Income obtained from Sales and deducting expenses incurred • From our earlier slide , Expenses is given below • From Previous Slide , Sales income is given below
