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The income statement is the presentation of the various receipts and expenditure incurred by the proprietor or the business or the firm. It includes two sides, particularly credit and debit and for a simpler word one that is coming and the other that is going. It is focusing on the cash incoming and outgoing. The ultimate result of the statement is revenue deficit. The revenue is the profit or the excess of income over the expenditure. The deficit is the loss which is the excess of expenditure over the income. The statement is prepared as per guidelines and principles reflected in the Accounting Standards issued by ICAI. Any discrepancy is not at all allowed if they do not represent the true and fair view of the financial position of the company. Window dressing performed by the limited company often results into a very strict action by the authorities which include central government, high court, and even supreme court.
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