Profit and loss account formats: the Schedule III statement of profit and loss for companies, a simple P&L for small businesses, worked examples and free Excel templates.
Statement of profit and loss (Schedule III)
| Particulars | Note | Amount |
|---|---|---|
| I. Revenue from operations | 48,50,000.00 | |
| II. Other income | 35,000.00 | |
| III. Total income (I + II) | 48,85,000.00 | |
| IV. Expenses | ||
| Cost of materials consumed | 19,00,000.00 | |
| Purchases of stock-in-trade | 6,50,000.00 | |
| Changes in inventories | (80,000.00) | |
| Employee benefits expense | 8,20,000.00 | |
| Finance costs | 95,000.00 | |
| Depreciation and amortisation | 1,40,000.00 | |
| Other expenses | 5,20,000.00 | |
| Total expenses (IV) | 40,45,000.00 | |
| V. Profit before exceptional and extraordinary items and tax | 8,40,000.00 | |
| VI. Exceptional items | 0.00 | |
| IX. Profit before tax | 8,40,000.00 | |
| X. Tax expense: current and deferred | 1,67,000.00 | |
| XI. Profit for the period | 6,73,000.00 |
Example figures. Companies also show earnings per share and previous year figures.
Simple profit and loss statement for small businesses
| Amount | |
|---|---|
| Sales | 12,40,000.00 |
| Less: Cost of goods sold | (8,45,000.00) |
| Gross profit | 3,95,000.00 |
| Less: Salaries, rent, utilities, other expenses | (1,99,000.00) |
| Less: Depreciation and interest | (30,000.00) |
| Add: Other income | 13,000.00 |
| Net profit | 1,79,000.00 |
For a proprietor or firm, the trading and profit and loss account in T-form is also common.
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Common P&L mistakes
Do
- Separate revenue from operations and other income.
- Show depreciation as its own line.
- Match expenses to the period (accrual).
Avoid
- Do not include drawings or capital items as expenses.
- Do not put GST collected into revenue.
- Do not net off income and expenses without disclosure.
Downloadable Excel
Need the bill before the books?Make GST invoices, bills and receipts in the browser; they feed straight into these registers.
Open the invoice generatorFrequently asked questions
Is profit and loss account the same as income statement?
Yes. Companies in India call it the statement of profit and loss.
Where do drawings go?
Not in the P&L. Drawings reduce capital in the balance sheet.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.