What is a Profit and Loss Statement?
Profit & Loss Account is a type of Financial Statement which reflects the outcome of business activities during an accounting period (i.e. profit or loss). Reporting income and expenses are directly related to an organization’s are considered to measure the performance in terms of profit & loss.
The Objective of Profit & Loss A/c
Table of Contents:
Profit and Loss Basic Concepts
3. Cost Price (CP)
4. Selling price (SP)
5. Marked Price Formula (MP)
Profit and Loss Formulas
- Profit or Gain = Selling Price – Cost Price
- Loss = Cost Price -Selling Price