Other Income Under Profit And Loss Statement

Cogd 300 000 gross profit 200 000.

Other income under profit and loss statement. In income statement other income is presented after the other gross profit. Income statement also known as profit loss account is a report of income expenses and the resulting profit or loss earned during an accounting period. Other income 1 000. A profit and loss p l or income statement measures a company s sales and expenses over a specified period of time.

The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement. Entities may present all items together in. The income statement like the cash flow statement shows changes in accounts over a set period. For example during the year the company make revenue usd500 000 cost of sales usd300 000 and other income usd5 000 then the extract p l of the company is as following.

You can use this guide to create a profit and loss statement for your business. A single statement or. The balance sheet on the other hand is a snapshot showing what the company owns and owes at a. Digital library acquiring and managing finances financial statements how to prepare a profit and loss income statement.

The purpose of the statement of profit or loss and other comprehensive income oci is to show an entity s financial performance in a way that is useful to a wide range of users so that they may attempt to assess the future net cash inflows of an entity. A profit and loss statement p l or income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time.