Arrange the following items in correct order as per statement of Profit and Loss of a company.
(A) Changes in inventories of finished goods
(B) Finance Cost
(C) Cost of materials consumed
(D) Depreciation and Amortisation
(E) Employees Benefit Expenses
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (C), (A), (E), (B), (D)
Schedule III of the Companies Act, 2013 lists the expenses in the Statement of Profit and Loss in a set order.
(C) Cost of materials consumed — first expense item.
(A) Changes in inventories of finished goods — next, after purchases of stock-in-trade.
(E) Employees Benefit Expenses — third of the five.
(B) Finance Cost — fourth of the five.
(D) Depreciation and Amortisation — last of the five, followed only by other expenses.
NCERT (2026-27 edition):
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