Arrange the following in correct sequence according to the form and content of statement of Profit and Loss.
(A) Employee Benefit Expenses
(B) Tax provided
(C) Revenue from operations
(D) Purchase of stock in Trade
(E) Dividend Income
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (C), (E), (D), (A), (B)
The Statement of Profit and Loss (Schedule III) lists revenues first, then expenses in a set order, then tax:
(C) Revenue from operations — item I.
(E) Dividend Income — part of Other income, item II.
(D) Purchase of stock in Trade — an expense listed before employee benefits.
(A) Employee Benefit Expenses — a later expense head.
(B) Tax provided — Tax expense, shown after profit before tax.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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