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Income Statement Format

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Nathefa Layne
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5 views2 pages

Income Statement Format

Uploaded by

Nathefa Layne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Income statement

An income statement is one of the three major financial statements that report a
company's financial performance over a specific accounting period.

Components of Income Statement (Trading and Profit and Loss A/C)

(i) Gross Profit

This is a profit that is calculated before operating expenses.

Sales – Cost of goods sold = Gross profit

$ $ $
Sales XX
Less sales return XX
Net sales/turnover XX

Less cost of goods sold


Opening inventury/stock XX
Add purchases XX
Add carriage inwards XX
XX {-}
Less purchase returns XX
XX
Less closing inventury XX
Cost of goods sold XX
GROSS PROFIT XX

(ii) Net Profit

This a profit that is calculated after expenses.

Gross profit – Expenses = Net profit

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