Profit and Loss › Help › Using it

How to make your profit and loss account and balance sheet

This page turns your saved bills, purchases, expenses and money entries into a profit and loss account and a balance sheet, for a bank loan, your CA or your own check.

Step by step

1. Pick the period. Usually 1 April to 31 March; any dates work.
2. Check the trial balance. Every account from your records with its head. Move a line to another head if it belongs elsewhere.
3. Check the stock. Opening and closing stock come from the stock register; type your own value after a stock count.
4. Add what the bills do not show. Fixed assets, depreciation, capital, loans, drawings, interest received: two typed lines for each adjustment.
5. Read the statements. Schedule III order, or switch to T format; gross and net profit; the balance sheet must agree.
6. Save and print. Save, print or share as PDF.

Worked example

Sales ₹39,340, purchases ₹15,000, closing stock ₹12,000, expenses ₹9,850: gross profit ₹36,340, net profit ₹26,490. Adding depreciation of ₹5,000 on a computer lowers net profit to ₹21,490 and the computer's value on the balance sheet.

Common mistakes and how to fix them

• Balance sheet does not agree. An opening balance (capital, stock, loans) is missing.

Related help

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