Arrange following items of Statement of Profit & Loss in a sequence of its appearing as per schedule III of Companies Act, 2013:
A. Expenses
B. Tax Expenses (Paid)
C. Revenue from operations
D. Profit before Tax
E. Profit after Tax Choose the correct answer from the options given below:
This question was previously asked in
Shift 25/05/2023 8:30 AM - 10:30 AM
Correct Answer
Detailed Explanation
In accordance with Schedule III of the Companies Act, 2013, the typical sequence of items in the Statement of Profit & Loss is as follows:
Revenue from Operations (C): This is usually the first item and represents the company's total revenue generated from its primary operating activities.
Expenses (A): These include all operating expenses related to generating the revenue, such as the cost of goods sold, operating costs, depreciation, and other expenses.
Profit before Tax (D): This represents the operating profit before accounting for income tax expenses.
Tax Expenses (Paid) (B): This includes the income tax expenses paid or accrued during the accounting period.
Profit after Tax (E): This is the final item and represents the net profit after accounting for income tax expenses.
So, the correct sequence is:
C, A, D, B, E
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