Note:

This section will provide you guidelines on how to prepare income statement of your business.

The statement templates provided, serve as a guide towards bare minimum line items that may be included in the financial sta
complete set of financial statements includes: income statement, balance sheet and cash flows along with explanatory notes. F
guidance for preparation of formal financial statements, if deemed necessary.

Entries in this template that are marked in black indicate use of formulae. Please avoid tempering with formulae based entries.

Income Statement (Amount in Rs.)

Year 1
This figure is obtained by multiplying number of units sold in a
A Sales
year with the net sales price of the product / service.

Cost of Goods Sold: This includes cost of raw material, labour, and factory overheads incurred during the production
be obtained by multiplying cost per unit with the total number of units sold during the year). In case of service based
services maybe included.

Year 1

B Raw material The cost of raw material used in production of goods sold.

The amount paid to direct labour employed by the business, e.g.

C Wages
production workers in case of a manufacturing concern.

D Overheads The production cost other than direct material and direct labour.

E Cost of Goods Sold (B+C+D) 0

Profit earned from the difference between amount of sales

F Gross Profit 0
and cost of goods sold. (A-E)

Expenditures: Selling, Admin and General expenditure.

Paid to workers other than direct labour e.g. managers,
G Salaries
accountant, salesman, peon.

H Rent Rent of the factory or office building (If Any).

Amount paid for indirect electricity, telephone, Gas, water bills

I Utilities
other than used for production and accounted for in "D".

Amount paid as insurance of plant/machinery, office vehicles or

J Insurance
any other business assets.
Any expenditure incurred for advertising and promotion of your
K Advertising
business.
Amount of depreciation for the year, charged against fixed
L Depreciation
assets of the business.
M Other Office Expenditure Office stationery, entertainment, janitorial services.

N Others Any other expenditures related to your business.

Interest paid on Short Term (working Capital) and Long Term

O Interest on Loan
Loan.

P Sub - Total (G+H+I+J+K+L+M+N+O) 0

Q Operating Income Gross profit minus Expenditure. (F-P) 0

R Tax Tax applicable according to the income of the business.

S Net Income Operating Income - Tax Amount. (Q-R) 0

statement of your business.

minimum line items that may be included in the financial statements. Please note that
alance sheet and cash flows along with explanatory notes. Further, you may seek professional
necessary.

mulae. Please avoid tempering with formulae based entries.

Year 2 Year 3 Year 4

abour, and factory overheads incurred during the production for the units sold. (This figure can
mber of units sold during the year). In case of service based businesses, cost of delivering the

Year 2 Year 3 Year 4

0 0 0

0 0 0
0 0 0

0 0 0

0 0 0