Mr. Patil started a poultry business with 102 birds with an initial investment of Rs. 5,000. In the first month, 7 birds died and expenses totaled Rs. 2,040. With 95 remaining birds averaging 1.8 kg each and selling at Rs. 15/kg, sales totaled Rs. 2,565. By subtracting expenses from sales, Mr. Patil made a profit of Rs. 525 in the first month. In a second scenario where 40 birds died instead of 7, students are assigned to recalculate the profit or loss.

1. Vigyan Ashram Pabal

2. Introduction
 Balance sheet shows health of the organization.
Income statement also called as profit and loss
statement (P&L), gives company's financial statement
for particular period.
 This shows if the organization has made profit or loss
during particular period.
 This slide demonstrates in a simpler manner how
profit can be calculated

3. Example of profit and loss
statements
Case
Mr Patil started poultry as a side business with 102 birds.
He started business with his own saving of Rs.5000/-.
Out of 102 birds, in one month, 7 birds died

4. Expenses
 First batch of birds, following were his expenses as
shown in table below
Total 2040 rupees
Particulars of Expenses Cost in rupees
Birds (102 nos) 520 rupees
Transportation 20 rupees
Bird feed 1200 rupees
Medicine , electricity expenses 90 rupees
Labor charge and capital
interest
200 rupees
Birds Mortality 10 rupees

5. Sales
 Total Weight of birds were averaging 1.8 kgs
 Due to mortality factor, Mr Patil has 95 birds
 Purchasing rate in market is 15 rupees per kg
 Thus Sales in rupees can be calculated as
No of Birds x Average Weight x Rate per kg of birds
= 95 x 1.8 x 15
Total Money obtained from Sales = 2565 Rupees

6. Profit
Total Profit is
 Income obtained from Sales and deducting expenses
incurred
 From our earlier slide , Expenses is given below
 From Previous Slide , Sales income is given below
Expense = 2040 Rupees
Income from Sales = 2565 rupees
Profit = Income from Sales - Expenses
Profit = 2565 – 2040 = 525 rupees

7. Assignment
 Consider the same case
Now the mortality is of 40 birds i.e 40 birds out of 102
died
Activity :- Calculate the profit / loss for the poultry