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).
(C) Revenue from operations- Revenue from operations
(E) Dividend Income- Other income
(D) Purchase of stock in Trade-EXPENSES
(A) Employee Benefit Expenses- EXPENSES
(B) Tax provided- TAX
VERTICAL FORMAT OF STATEMENT OF PROFIT AND LOSS IS AS FOLLOWS-
I Revenue from operations
II Other income
III Total Revenue (I+II)
IV Expenses: Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods Work-in-progress and stock-in-trade
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total expenses
V Profit before extraordinary items and tax (III-IV)
VI Exceptional items
VII Profit before extraordinary items and tax (V-VI)
VIII Extraordinary items
IX Profit before tax (VII-VIII)