Income statement

                     Income statement

Income statement also known as profit and loss account, revenue statement , statement of financial performance . Statement of operations.

It is the statement in which we show about profit and expense of the company for a particular period of time. It shows profit about the sale of products and expense about product. It plays a very important role in organization to maintain their sustainability. The purpose of the income statement to check profit and expense of the company. It is based on accrual accouting.

There are two types of income statement

·        Single steps

·        Double steps income statement

                  Single steps income statement

                         

                               Income statement

                       For the year ended December 2017

description	rs	rs
Revenue		100,000
(-) Expense Advertising expense Rent Entertainment Utilities Telephone Salary expense Petty expense	$15000  $20,000 $18,000 $3,000 $2000  $ 20,000 $7,000	(85000)
Net profit		15000

Net profit

Net profit mean business run according to desire and business gain profit. if price comes in negative its mean business run in loss.

DOUBLE STEP INCOME STATEMENT

  

                                      INCOME STAEMENT

                          FOR THE MONTH OF DECEMBER 31,2017

DESCRIPTION	RS	RS
REVENUE cost of sales		500,000 (100,000)
GROSS PROFIT (-)OPERATING EXPENSE administrative expense depreciation amortization TOTAL OPEARITING EXPENSE	(50,000) (100,000) (20,000)	$400,000 (170,000)
OPERATING PROFIT (+)interest income (-)interest expense Profit or loss before income tax (-)incomtaexpense	40,000 (20,000)	$270,000 (20,000) $250,000 (14,000)
Net profit		$236,000