Remember, Profit and Loss as shown in Books of Accounts is bifurcated into Trading and P&L

There is no such bifurcation in Schedule III Profit and Loss

Also,there is no trouble of finding whether an expense is Direct or Indirect


How to Prepare for Trading Companies

Refer explanation for different points in blue below

Profit and Loss as per Schedule III for Trading Companies and Service Providers - Making Revised Schedule III Balance Sheet


  1. Accounts and Finance
  2. Step 4 Balance Sheet Finalization Procedure

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.