owner or any fresh capital introduced by him during the accounting period in order to arrive at the amount of profit or loss made during the period. The statement of profit and loss is prepared as shown in figure . . Statement of Profit or Loss for the year ended ........
Capital as at the end of year (computed from statement of affairs ..... as at the end of year) Add Drawings during the year ..... Less Additional capital introduced during the year ( ..... ) Adjusted capital at the end of year .....
Less Capital as at the beginning of year (computed from statement of ( ..... ) affairs as at the beginning of year) Profit or Loss made during the year ..... Fig. .
: Format of statement of profit or loss