How to make profit and loss account?

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Is there some kind of proforma to make a profit and loss account reconciliation? What is usually included in the movement of this account?

score 0 · Answer 1 · 2012-12-02T22:56:53+00:00

A basic profit and loss account example is as follows:

Revenue 5,000
Cost of Sales (1,000)
Gross Profit 4,000

Operating Expenses (500)
PBIT 3,500

Finance Costs (200)
Investment Income (100)

Profit before tax 3,200
Tax for the year (640)

Profit for the year 2,560