Profit and Loss Account Format

Blank format

Begin with the centred three-line heading (business name, 'Profit and Loss Account', and 'for the year ended ...'). Individual income and expense items go in the first (inner) RM column, while gross profit, sub-totals and net profit go in the second (outer) RM column; write the section labels 'Add: Income' and 'Less: Expenses' on their own lines.

Parts of the format

Three-line heading

The business name, account name ('Profit and Loss Account') and the period ('for the year ended ...') are centred. A period is used because the account shows profit or loss over a period, not at a single date.

Gross profit b/d

The starting figure brought down from the Trading Account; placed in the second RM column as the opening figure of this statement.

Add: Income section

Lists income other than sales, such as discount received and commission received, in the first RM column, then totals it and adds it to gross profit.

Less: Expenses section

Lists all operating expenses such as salaries, rent and insurance in the first RM column, totals them, and deducts the total from the sub-total.

Net profit

The final result after deducting total expenses; this figure is then transferred to the capital account in the Statement of Financial Position.

Two RM money columns

The inner column holds individual items and the outer column holds running totals, so the step-by-step calculation can be seen clearly.

Filled example

Perniagaan Maju Jaya, a stationery shop owned by Encik Rahman, recorded gross profit b/d of RM45,000 for the year ended 31 December 2024. Other income: discount received RM1,200 and commission received RM2,300; expenses: salaries RM12,000, rent RM6,000, insurance RM1,800 and utilities RM2,400.

Common layout errors

All formats →