From the following particulars, prepare statement of profit and loss for the year ended 31.03.2025 as per Schedule III of Companies Act, 2013 :
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Always group miscellaneous expenses like Rent, Administrative expenses, Insurance, etc., under the single heading "Other Expenses" as per Schedule III requirements.
Step 1: Understanding the Concept:
The Statement of Profit and Loss must be prepared in the vertical format prescribed under Part II of Schedule III of the Companies Act, 2013. Expenses must be grouped under specific statutory headings.
Step 2: Detailed Explanation:
Let's classify the given items into Schedule III headings:
- Revenue from operations: ₹ 8,00,000 (Goes under heading I).
- Purchases of Stock-in-Trade: ₹ 4,00,000.
- Employee Benefit Expenses: Salaries ₹ 1,00,000.
- Finance Costs: ₹ 30,000.
- Depreciation and Amortization Expense: ₹ 20,000.
- Other Expenses: Rent (₹ 15,000) + Administrative expenses (₹ 35,000) = ₹ 50,000.
- Tax Expense: ₹ 60,000.
Now, we construct the formal statement.
