What is Profit & Loss statement?

What is Profit & Loss statement?

A Profit and Loss (P&L) Statement is a financial report that shows profits or losses from buying and selling securities. It contains detail of Brokerage, taxes and other charges and how much you earned or lost in that period. It helps measure how well a trading account has performed financially.

This statement summarizes income earned and expenses incurred during a given period (daily, monthly, quarterly, or annually) to indicate whether there is a net profit or net loss.


Purpose

  1. To assess financial performance during a period
  2. To track profitability trends over time
  3. To support tax filing and compliance
  4. To assist in decision-making and investment analysis