Profit and Loss Statement

A profit and loss statement (a/k/a income statement) is a financial statement primarily created and used by self-employed individuals and sole proprietorships to determine the business’s profitability. The profit or loss (a/k/a net income) is derived from a simple calculation: revenue generated (i.e. income received, gross receipts, etc.) minus expenses incurred to create the revenue (i.e. wages paid, equipment/supplies purchased, etc.). In the business world, revenue generated is distinguished from the profit or loss in comparison to where they are found on the statement. “Revenue generated” is often referred to as the “top line” versus “profit or loss” which is referred to as the “bottom line”.

For your reference. Please find sample profit and loss statements below. One version is a profit and loss statement for rental income. The other version is a profit and loss statement for business income. The profit and loss statements are in PDF format. They are for your reference only.

Profit and Loss – Rental Income
Profit and Loss – Business Income