The organization's profit and loss statement must contain data on financial results, income, expenses and losses. It is used to analyze the financial performance of past reporting periods. The important components of the report are: cost of goods sold, gross profit, sales income and expenses.
It is necessary
Form for filling out a report, pen, data on the movement of accounts
Instructions
Step 1
Income is the proceeds received from the sale of goods, the provision of services and work performed, which is reflected in the loan. The costs of manufacturing goods, services and works are considered expenses and are shown as debit. To determine the amount of gross loss or profit, you need to subtract the cost price from the revenue.
Step 2
Expenses can be administrative or commercial. Salaries, hospitality and auditing expenses are classified as administrative expenses. Selling expenses include the cost of selling a product, it can be packaging costs, shipping costs or payment for advertising a product.
To see the turnover, you need to subtract administrative and selling expenses from the gross loss or profit.
Step 3
The report also indicates other income and expenses, this is usually interest on bank deposits or payment of interest on loans. This may also include operating income such as rental income, income from property sales, fines for breach of contract, and more.
Step 4
When all the lines for other expenses and income are completely filled in, you can calculate the amount of loss or profit before tax. To do this, the loss or profit from the sale of goods is added up with the interest received, then the interest paid is subtracted, other operating income is added, other expenses are deducted, and as a result, the amount of losses or profit before tax is obtained. Lines with deferred tax assets appear in the report if the company first calculates accounting expenses, then tax expenses, and then only income.
Step 5
To find out the amount of net profit, you need to add profit before tax with deferred tax assets and deduct current income tax with deferred tax liabilities.
