Profit and Loss Statement

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# Profit and Loss Statement - PowerPoint PPT Presentation

Profit and Loss Statement. Introduction. Balance sheet shows health of the organization. Income statement also called as profit and loss statement (P&amp;L), gives company\'s financial statement for particular period.

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### Profit and Loss Statement

Introduction
• Balance sheet shows health of the organization. Income statement also called as profitand loss statement (P&L), gives company\'s financial statement for particular period.
• This shows if the organization has made profit or loss during particular period.
• This slide demonstrates in a simpler manner how profit can be calculated
Example of profit and loss statements

Case

MrPatil started poultry as a side business with 102 birds. He started business with his own saving of Rs.5000/-.

Out of 102 birds, in one month, 7 birds died

Expenses
• First batch of birds, following were his expenses as shown in table below

Total 2040 rupees

Sales
• Total Weight of birds were averaging 1.8 kgs
• Due to mortality factor, MrPatil has 95 birds
• Purchasing rate in market is 15 rupees per kg
• Thus Sales in rupees can be calculated as
Profit

Total Profit is

• Income obtained from Sales and deducting expenses incurred
• From our earlier slide , Expenses is given below
• From Previous Slide , Sales income is given below