Get Profit Loss

A profit and loss (or income) statement lists your sales and expenses. It tells you how much profit you're making, or how much you're losing. You usually complete a profit and loss statement every month, quarter or year.

A profit and loss statement shows whether a business is profitable or not. ing to Investopedia, “a profit and loss statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year.”

As it accounts for the net income of the entity, another name given to trading and profit and loss account is income statement.

A profit and loss statement, also called an income statement, revenue statement, P&L statement or simply P&L, can help you determine your business's overall financial standing. It's one of the three main financial statements for businesses — the other two are the balance sheet and cash-flow statement.

Profit Loss Formula When the selling price and cost price are known, the basic formulas for calculating the profit and loss are: Profit = Selling price (S.P.) - Cost price (C.P.) Loss = Cost price (C.P.) - Selling price (S.P.)

For example, a contractor under a construction contract may allege that due to a client delaying the project so that it overruns, the contractor has lost work on other projects and consequently lost the ability to make profit on those other projects.