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Note: |
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This section
will provide you guidelines on how to prepare income statement of your
business. |
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The statement templates provided, serve as a guide towards bare
minimum line items that may be included in the financial statements. Please
note that complete set of financial statements includes: income statement,
balance sheet and cash flows along with explanatory notes. Further, you may
seek professional guidance for preparation of formal financial statements, if
deemed necessary. |
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Entries in this
template that are marked in black indicate use of formulae. Please avoid
tempering with formulae based entries. |
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Income Statement (Amount in Rs.) |
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A |
Sales |
This
figure is obtained by multiplying number of units sold in a year with the net
sales price of the product / service. |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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Cost of Goods Sold: This includes cost of raw material, labour,
and factory overheads incurred during the production for the units sold.
(This figure can be obtained by multiplying cost per unit with the total
number of units sold during the year). In case of service based businesses,
cost of delivering the services maybe included. |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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B |
Raw material |
The cost of raw material used in production of
goods sold. |
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C |
Wages |
The amount paid to direct labour employed by
the business, e.g. production workers in case of a manufacturing concern. |
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D |
Overheads |
The production cost other than direct material
and direct labour. |
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E |
Cost of Goods Sold |
(B+C+D) |
0 |
0 |
0 |
0 |
0 |
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F |
Gross Profit |
Profit earned from the difference between amount of sales and
cost of goods sold. (A-E) |
0 |
0 |
0 |
0 |
0 |
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Expenditures: Selling, Admin and General
expenditure. |
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G |
Salaries |
Paid to workers other than direct labour e.g.
managers, accountant, salesman, peon. |
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H |
Rent |
Rent of the factory or office building (If
Any). |
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I |
Utilities |
Amount paid for indirect electricity,
telephone, Gas, water bills other than used for production and accounted for
in "D". |
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J |
Insurance |
Amount paid as insurance of plant/machinery,
office vehicles or any other business assets. |
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K |
Advertising |
Any expenditure incurred for advertising and
promotion of your business. |
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L |
Depreciation |
Amount of depreciation for the year, charged
against fixed assets of the business. |
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M |
Other
Office Expenditure |
Office stationery, entertainment, janitorial
services. |
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N |
Others |
Any other expenditures related to your
business. |
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O |
Interest on
Loan |
Interest paid on Short Term (working Capital)
and Long Term Loan. |
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P |
Sub - Total |
(G+H+I+J+K+L+M+N+O) |
0 |
0 |
0 |
0 |
0 |
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Q |
Operating Income |
Gross profit minus Expenditure. (F-P) |
0 |
0 |
0 |
0 |
0 |
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R |
Tax |
Tax
applicable according to the income of the business. |
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S |
Net Income |
Operating Income - Tax Amount. (Q-R) |
0 |
0 |
0 |
0 |
0 |
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