Identify the correct sequence of items in the statement of profit and loss of a company.
A. Other Income
B. Total Expenses
C. Revenue from Operations
D. Profit before extraordinary items & tax
E. Total Revenue
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → C, A, E, B, D
The Statement of Profit and Loss (Schedule III) is built up in this order:
C. Revenue from Operations — item I.
A. Other Income — item II.
E. Total Revenue — item III (I + II).
B. Total Expenses — item IV.
D. Profit before extraordinary items & tax — item V (III − IV).
Note: The book’s form prints item V as “Profit before extraordinary items and tax”, the same words as item VII; under Schedule III item V reads “Profit before exceptional and extraordinary items and tax”.
NCERT (2026-27 edition):
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