profit and loss account

shows a company’s revenue and expenses over a particular period of time

The profit and loss account represents the profitability of a business

Profit and loss accounts show your total income and expenses

The profit and loss account is also known as a P&L report, an income statement, a statement of operation, a statement of financial results, or an income and expense statement.

Sold (COGS) / Cost of Sales
Selling, General and Administrative expenses (SG&A or SGA)
Depreciation / Amortization
Research & Development (R&D) expenses

Non-operating section
Other revenues or gains 
Other expenses or losses 
Finance costs 
Income tax expenses

allowances from your gross income (excluding VAT) to get your net income.
Deduct the cost of sales from your net incomes to find your gross profit.
Deduct overheads from your gross profit to get your operating profit.
Deduct any other expenses from your operating profit (plus any other income) to find your profit before tax.
Deduct tax to reach your net profit or net loss.

2018 Total Revenue                        $100,000 Cost of Goods Sold               ($ 20,000) Gross Profit                             $ 80,000 Operating Expenses      Salaries          $10,000     Rent               $10,000  Utilities           $  5,000  Depreciation  $  5,000 Total Operating Expenses    ($ 30,000) Operating Profit (EBIT)           $ 50,000 Interest Expense                    ($ 10,000) Income before taxes (EBT)     $ 40,000 Taxes                                        ($ 10,000) Net Income                                $ 30,000

The example of P&L statement