Question

Sort the following items in the order they will appear in the statement of profit and loss :

• A. Other Income
• B. Total Revenue
• C. Total Expenses
• D. Tax Expense

Answer 1

As per Schedule III, the companies are required to make statement of profit and loss. It should be prepared in the following order :

• Revenue from operations
• Other income
• Total Revenue
• Expenses
• Total Expenses
• Profit before tax
• Tax Expense
• Profit or loss for the period