How to Write Income Statement

To write income statement is just like to prepare profit and loss account. This statement shows different operating expenses and incomes for specific period. By comparing income and expenses in this statement, we have to calculate net profit or loss of business. This net profit or net loss is also true result of your business which affects your business decision.  Following format  will be helpful for you to write your own income statement.

Income Statement's Simple Format


First of All Write your Sale XXXXX

Less : Cost of Goods Sold XXXXX
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Balance will be Gross profit XXXXX

Less :  all the operating Expenses relating to office,

administrative, sales and destribution expenses XXXXX

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Balance will be Operating Income  XXXXX

Add :  Incomes such as interest revenue, and gain on sale. XXXXX

Less : Non operating Expenses such as interest expenses, and loss on sale. XXXXX

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Balance will be Net Income  XXXXX

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Important Note :


This income statement shows incomes and expenses, so it also include but received and receivable incomes and paid and payable expenses. You can n't also include assets and liabilities in above income statement, for showing  assets and liabilities, you have to make financial statement.