Limited company accounts

Income Statement Layout

AQA format

[Company Name]
Income statement for the year ended [date]
                                          £
Revenue                                   X
Cost of sales                            (X)
──────────────────────────────────────────
Gross profit                              X
Other income                              X
                                          X
Expenses                                 (X)
──────────────────────────────────────────
Profit from operations                    X
Finance costs                            (X)
──────────────────────────────────────────
Profit for the year before tax            X
Taxation                                 (X)
──────────────────────────────────────────
Profit for the year after tax             X

Notes

• Profit from operations = equivalent to "profit for the year" in a sole trader income statement
• Finance costs = debenture loan interest (fixed % per annum); charged regardless of profit level
• Taxation = corporation tax; calculated on profit before tax
• Profit after tax is transferred to the statement of changes in equity

Key differences from a sole trader