Income Statement Format For Limited Company

The income statement also called the profit and loss statement is a report that shows the income expenses and resulting profits or losses of a company during a specific time period.

Income statement format for limited company. In this chapter we focus on the published financial statements of limited companies and look at. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Cost of sales.

Multi step income statement format. The income statement can either be prepared in report format or account format. Gross profit 58 000. Income tax wealth tax int on tax penalty on tax shown as exp deferred tax xx section 43 b expenses interest on bank loan bonus pf not paid till return filing date 30 sept xx any uncertain ed provisions provision made without any basis e g prov for bad debts xx less exp allowed like depreciation as per income tax.

It is more rep resentative of the type found in practice. This statement is a condensed version of the more detailed income statement presented in illustration 4 2. For the year ended december 31 2019. N the purpose and components of financial statements n the format of published financial statements n dealing with dividends in the financial statements n interpretation of the auditors report n the accounting policies followed by a particular company n bonus issues and rights issues of shares.

The structure of the income statement profit and loss part prepared for limited liability companies such as private limited pvt ltd and public limited liability companies is especially different from those prepared for sole traders and partnerships. For example consider the income statement shown in illustration 4 3 for boc hong company. Illustration 4 2 income statement boc hong company income statement for the year ended. The income statement format for uk based companies.

When ec regulation 1606 2002 became effective.