Basics of Handling Profit & Loss Accounts Course by Manav

The Basics of Handling Profit & Loss Accounts course by Manav is designed to help students, business owners, and accounting professionals clearly understand how Profit & Loss (P&L) statements are structured, prepared, and analyzed.

A Profit & Loss Account is one of the most important financial statements used to measure a company’s performance. This course focuses on building strong conceptual clarity along with practical understanding of revenue recognition, expense classification, adjustments, and profitability analysis.

Available in both online and offline modes, the course combines theory with practical examples to ensure learners can confidently prepare and interpret P&L statements in real-world scenarios.

What You Will Learn

Understanding & Managing Profit & Loss Account

• Purpose and importance of the P&L Account
• Difference between Trading Account and Profit & Loss Account
• How businesses measure financial performance
• Relationship between P&L and Balance Sheet

Structure of Profit & Loss Account

• Standard format of P&L statement
• Direct vs indirect expenses
• Operating and non-operating income
• Layout used in firms and companies

Students will learn how to structure a proper Profit & Loss statement step-by-step.

Revenue & Expense Classification

• Operating revenue vs non-operating revenue
• Direct expenses vs indirect expenses
• Fixed vs variable costs
• Capital vs revenue expenditure

Clear classification helps in accurate financial reporting and analysis.

Gross Profit & Net Profit Calculation

• Formula and calculation of Gross Profit
• Understanding Cost of Goods Sold (COGS)
• Calculation of Net Profit
• Understanding operating profit and final profitability

Learners will practice preparing profit calculations from trial balance data.

Recording Adjustments

• Depreciation entries and impact on profit
• Outstanding expenses
• Prepaid expenses
• Accrued income
• Adjustment entries and their effect on final accounts

This section ensures students understand real-world year-end adjustments.

Analyzing Profitability of Firms & Companies

• Reading and interpreting financial statements
• Identifying profit trends
• Basic profitability ratios
• Comparing performance across periods
• Decision-making using P&L data

Students learn how businesses analyze performance using financial reports.

Common Errors & Rectification

• Misclassification of expenses
• Incorrect adjustment entries
• Overstatement or understatement of profit
• Rectification techniques

This module helps learners avoid frequent accounting mistakes.

Teaching Methodology

• Concept-based explanations
• Practical examples and case studies
• Step-by-step preparation of P&L accounts
• Real business scenarios
• Doubt-clearing sessions
• Hands-on practice

Who Should Join

• Commerce students
• B.Com and M.Com students
• Business owners
• Beginners in accounting
• Professionals seeking clarity in financial statements

Learning Outcomes

• Ability to prepare a Profit & Loss Account independently
• Clear understanding of revenue and expense classification
• Practical knowledge of adjustment entries
• Strong foundation in financial statement analysis
• Improved ability to analyze business profitability