Beruflich Dokumente
Kultur Dokumente
Nama Kelompok :
UNDIKNAS DENPASAR
FAKULTAS EKONOMI DAN BISNIS / AKUNTANSI
TAHUN AJARAN
2019/2020
PREFACE
Praise and gratitude we pray to the presence of the One God, for having bestowed
His grace in the form of opportunity and knowledge so that this paper can be completed in
due course. We also thank our friends who have contributed by giving their ideas so that this
paper can be arranged well and neatly. Although there are various obstacles and obstacles,
but we are still trying to complete this paper as well as possible and on time.
Not to forget, we also thank the parties who contributed both directly and indirectly
in completing the assignment of this paper.
Apart from all that we realize this paper is far from perfect. Therefore, we really need
constructive criticism and suggestions to make us better. Our hope going forward, is that this
paper can educate us and the public and readers.
The Writer
TABLE OF CONTENTS
PREFACE.........................................................................................................................................i
i
TABLE OF CONTENTS............................................................................................................... ii
I. INTRODUCTION
I.1 Background.................................................................................................................... 1
I.2 Formulatin of the Problem.............................................................................................. 1
II. DISCUSSTION
II.1Profit and loss................................................................................................................. 2
II.1.1 Definition of Profit and Loss statement..................................................................... 2
II.1.2 Definition of Profit and Loss Account...................................................................... 2
II.1.3 The Purpose of Profit and Loss Statement................................................................ 3
II.1.4 The Purpose of Profit and Loss Account.................................................................... 4
II.1.5 The Difference between the Income Statement with the Profit and Loss Accont....... 6
II.1.6 The Equation between the Income Statement with the Profit and Loss Account....... 6
II.1.7 Stages of Making Profit and Loss Statement 6
III. CLOSING
III.1 Conclusion......................................................................................................................
.. 8
REFERENCES..................................................................................................................................9
ii
CHAPTER I
INTRODUCTION
1.1 Background
In accounting calculations there are two things that often occur, namely profit and loss. An
income statement is a part of a company's financial statements that presents the results of a
company's operations which consist of operating income and company expenses in a certain
period so that it generates revenue. Profit and Loss is also an account in the organization's book
to ensure a net profit or loss for a certain period of time or net business results.
The income statement summarizes the total costs incurred by the company during operations
and also the profits obtained by the company while doing business. The profit and loss statement
is very important for the company because it can be used to measure the achievement and
progress of the company's revenue. The income statement is an important part of the company
report because this report shows the company's net profit which can be assessed together whether
the company made profit during operation or was really lost.
On the income statement there are also supporting accounts such as profit and loss
accounts.The income statement consists of income and expenses. Revenue is the result of the
sale of a company's products or services.
Income consists of income received in advance, accrued income, interest income, and rental
income. In addition there are also expense accounts. Expenses are profit and loss accounts which
are the result of impairment of assets or increases in company liabilities such as rental expenses,
salary expenses, employee expenses and so on
This expense account consists of operating expenses and non-operating expenses. Based on
the background that has been made, we titled this paper "profit and loss account"
CHAPTER II
DISCUSSION
“Profit and loss account is a statement which summarizes all indirect revenue
expenses in one side which are compared with gross profit/ revenue incomes in another side
and net trading income of an accounting period is assessed.” – S. Mukherjee
Profit and loss accounts are special accounts that show all expenses and only the
gross profit for a company. Once this numbers are calculated, they will show the company's
profit for a year. This number should be the same as the number shown in the income
statement. The owners of the company can then use the profit number to disburse money to
equity shareholders of the company. Gross profit or loss of a business is ascertained through
trading account and net profit is determined by deducting all indirect expenses (business
operating expenses) from the gross profit through profit and loss account. Thus profit and
loss account starts with the result provided by trading account.
The particulars required for the preparation of profit and loss account are available
from the trial balance. Only indirect expenses and indirect revenues are considered in it. This
account starts from the result of trading account (gross profit or gross loss). Gross profit is
shown on the credit side of the profit and loss account and gross loss is shown on the debit
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side of this account. All indirect expenses are transferred on the debit side of this account
and all indirect revenues on credit side. If the total of the credit side exceeds the debit side,
the result is "net profit" and if the total of the debit side exceeds the total of the credit side,
the result is net loss.
5. Help the business analysis process so that it can measure the development of a
business entity.
7. Help the company's strategy analysis process to determine the level of success of
business strategies that have been applied previously in achieving company goals.
8. Becoming a reflection of the profile of a business entity for potential investors and
creditors who will conduct business transactions with the company.
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Profit and loss account compares between indirect expenses and indirect incomes
which helps to find out the amount of net profit and net loss made by the business the
particular period of time. It enables the businessman to make a comparison of net
profit or the net loss of the current year with the previous year.
Office and administrative expenses like office salaries, printing and stationary
expenses, legal expenses, telephone and electricity charges, office rent, audit fees,
insurance premium etc. Percentage of such expenses on sales can be determined and
compared with the previous year, which helps to control such expenses.
Selling and distributing expenses like warehouse expenses, carriage on sales, packing
expenses, commission on sales, advertising, traveling expenses etc. Percentage of
such expenses on sales can be determined and compared with the previous year,
which helps to control such expenses.
Expenses
Depreciation, repairs and maintenance, bad debts, provision for bad debts, loss on
sale of fixed assets and loss of goods in transit are some of the examples of other
expenses and losses. The information of such expenses is also provided by profit and
loss account. These expenses can be compared with the expenses of the previous year
and remedial action can be taken for minimizing such expenses and losses.
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5. To provide information about financial expenses :
The financial expenses which includes interest on a loan, interest on bank overdraft,
bank charges etc. Percentage of such expenses on net profit can be determined and
compared with the previous year, which provides pertinent information for raising a
loan.
Incomes
Different types of incomes and profits are earned by the business in the process of
operation of the business. Rent received, interest received, the commission received,
discount received, and profit on the sale of fixed assets and bad debts recovered are
some of the examples of such incomes and profits. The information of such incomes
and profits is provided by profit and loss account.
7. To make comparison :
Profit and loss account helps to evaluate the progress of the business by comparing
the amount of sales and net profit of current year with those of previous years.
8. To measure efficiency :
Profit and loss account helps in measuring the operating efficiency of the business by
comparing the amount of net profit with the amount of operating expenses.
Profit and loss account is essential to determine the operating result of the business. It
helps to examine the operating efficiency of the business. The importance and advantages of
profit and loss account are as follows: -
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1. It gives the actual information about net profit or net loss of the business fro an
accounting period.
2. It account gives the actual information about indirect expenses.
6. It helps to prepare plans and policies by making a comparative study of net profit,
indirect incomes, and indirect expenses.
2.1.5 The Difference between the Income Statement with the Profit and Loss Accont
There are also a few differences between income statements and profit and loss
accounts. Profit and loss accounts only show the gross profit of a company whereas
income statements show the net profit of a company. Income statements are used to show
the net worth of a company at a specific period of time. Profit and loss accounts are used
to determine what each individual equity shareholder is entitled to as a profit from the
company at a specific period of time.
2.1.6 The Equation between the Income Statement with the Profit and Loss Account
Many businesses interchangeably use the terms income statement and profit
and loss accounts. They have many similarities. Both are accounting terms that use a
company's income and expenses to determine profits. Both are used for a specific
period of time, usually a year or less. They are both used to determine the net profit
of a company in order for equity shareholders to receive their salary at the end of a
specific period.
2.1.7 Stages of Making Profit and Loss Statement
1) Keep the transaction journal first.
2) Post transactions to the ledger.
4) To be able to compile a company's income statement, you only need to quote all
income and expense account balances in the profit and loss column provided for
the working paper.
5) Before starting to make an income statement, you need to know the format. At the
top of the report, the company identity must be written, the type of report
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presented, and the period. After that, underneath the total income, total expenses,
and profit or loss.
6) The Revenue and Expense component can be quoted from the working paper in
the profit and loss column, while the profit or loss component is the difference
from the total income and expenses.
7) If the income statement is ready, the interested parties can assess the company's
request.
BAB III
CLOSING
5.1 Conclusion
The income statement is one of the financial statements that shows the income, expenses,
and profits generated by the company during a certain period of time and includes important
things you need to know if you want to learn accounting from the basic. The income statement
is made to calculate the company's net income by subtracting total expenditure from total
revenue according to data in the general journal. The income statement aims to show managers
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and investors whether the company made money (profit) or lost money (loss) during the
reported period.
“Profit and loss account is a statement which summarizes all indirect revenue expenses in
one side which are compared with gross profit/ revenue incomes in another side and net trading
income of an accounting period is assessed.” – S. Mukherjee
Profit and loss accounts only show the gross profit of a company whereas income statements
show the net profit of a company. Profit and loss accounts are used to determine what each
individual equity shareholder is entitled to as a profit from the company at a specific period of
time.
REFERENCES
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Nathan Reiff. (2019, march 26). Profit and Loss Statement (P&L). Retreived from
https://www.investopedia.com/terms/p/plstatement.asp
Rachel Blackey-Grav. (2019, December 8). Income Statement vs. P&L. Retreived from
https://www.patriotsoftware.com/accounting/training/blog/difference-between-income-statement-
vs-pl-profit-loss-same/
Jennifer F. Bender. (2019, September26 ). The Differences Between Income Statements and
Profit and Loss Accounts. Retreived from https://bizfluent.com/info-10008653-differences-
between-income-statements-profit-loss-accounts.html
Sugi. ( 2018, August 14). Mengenal fungsi, tujuan dan contoh lporan laba rugi. Retreived from
https://cpssoft.com/blog/akuntansi/fungsi-dan-contoh-laporan-laba-rugi/
https://corporatefinanceinstitute.com/resources/knowledge/accounting/profit-and-loss-statement-pl/
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By sugi|August 14th, 2018|Akuntansi mengenal fungsi, tujuan dan contoh laporan laba rugi