Contents of Profit and Loss account

1.       Revenue from operations

Includes sales and other revenue from operation. Furthermore, finance companies have to state revenue from interest, dividend and other services.

2.       Other income

Includes income from interest, dividend, non-operating income and income from the sale of investments.

3.       Expenses

Includes costs of materials, stock-in-trade, finance costs, depreciation, employee benefits and all other expenses.

Treatment of these three items will finally result in a statement of profit and loss. Accountants also have to deduct taxes and extraordinary items from the profit to ascertain the final profit or loss amount