Arrange the following in the context of Statement of Profit and Loss.
A. Other income
B. Expenses
C. Total Revenue
D. Revenue from operation
E. Profit before tax and extra-ordinary item
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → D, A, C, B, E
The Statement of Profit and Loss under Schedule III builds up total revenue first and then takes away the expenses:
(D) Revenue from operation — first (item I). The income from the main business.
(A) Other income — second (item II). Income from other sources, such as interest and dividend.
(C) Total Revenue — third (item III = I + II).
(B) Expenses — fourth (item IV). Cost of materials, employee benefits, finance costs, depreciation and other expenses.
(E) Profit before tax and extra-ordinary item — last (item V = III − IV).
Note: The book prints item V as “Profit before extraordinary items and tax”, the same words as item VII; this is a misprint. Under Schedule III item V is “Profit before exceptional and extraordinary items and tax”.
NCERT (2026-27 edition):
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