Arrange the following items in Correct order as per the Statement of Profit and Loss of a Company.
(A) Employee Benefit Expenses
(B) Finance Costs
(C) Depreciation and Amortisation
(D) Purchase of Stock in Trade
(E) Exceptional Items
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (D), (A), (B), (C), (E)
Schedule III lists the expenses under head IV in a fixed order, and exceptional items come after the profit before exceptional and extraordinary items and tax is struck.
(D) Purchase of Stock in Trade — first of the five; it follows cost of materials consumed.
(A) Employee Benefit Expenses — second, after the change in inventories.
(B) Finance Costs — third.
(C) Depreciation and Amortisation — fourth, before other expenses and total expenses.
(E) Exceptional Items — last; item VI, below the total of expenses.
NCERT (2026-27 edition):
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