Vigyan Ashram Pabal

Introduction
 Balance sheet shows health of the organization.
Income statement also called as profit and loss
statement (P&L), gives company's financial statement
for particular period.
 This shows if the organization has made profit or loss
during particular period.

 This slide demonstrates in a simpler manner how

profit can be calculated
Example of profit and loss
statements
Case

Mr Patil started poultry as a side business with 102 birds.

He started business with his own saving of Rs.5000/-.

Out of 102 birds, in one month, 7 birds died

Expenses
 First batch of birds, following were his expenses as
shown in table below
Particulars of Expenses Cost in rupees
Birds (102 nos) 520 rupees
Transportation 20 rupees
Bird feed 1200 rupees
Medicine , electricity expenses 90 rupees
Labor charge and capital 200 rupees
interest
Birds Mortality 10 rupees

Total 2040 rupees

Sales
 Total Weight of birds were averaging 1.8 kgs
 Due to mortality factor, Mr Patil has 95 birds
 Purchasing rate in market is 15 rupees per kg

 Thus Sales in rupees can be calculated as

No of Birds x Average Weight x Rate per kg of birds

= 95 x 1.8 x 15

Total Money obtained from Sales = 2565 Rupees

Profit
Total Profit is
 Income obtained from Sales and deducting expenses
incurred
 From our earlier slide , Expenses is given below
Expense = 2040 Rupees

 From Previous Slide , Sales income is given below

Income from Sales = 2565 rupees

Profit = Income from Sales - Expenses

Profit = 2565 – 2040 = 525 rupees

Assignment
 Consider the same case
Now the mortality is of 40 birds i.e 40 birds out of 102
died

Activity :- Calculate the profit / loss for the poultry