Form of Profit and Loss

The form of profit and loss can be arranged in accordance with the wishes and objectives of the company. However, the preparation is not made in an arbitrary form, in accordance with predetermined standards.

In practice, the income statement can be prepared in two forms namely

1. Single form

This singular form is a combination of the sum of all income, both principal and outside the principal into one, then the total cost of principal and outside the principal is also combined.

Thus, the deduction factor is the sum of all income by the sum of all costs. This means that in this singular income statement prepared without differentiating income and business costs outside the business

2. Compound form

The form of the compound type income statement is a separation between the components of the main business and outside the shop. This means that it is first reduced between basic income and cost, then added to the results of the reduction of non-basic income and non-principal costs.

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