How do you make a 'profit &loss' statement?

Question

I need to know how to make a profit and loss statement...
not one for a business, but one for me personally.

an example would help too.

Answer 1

It's rare to prepare a P&L statement for an individual. It's easy to identify your income - your salary, commission, tuition income, odd-jobs income, etc. But how do you identify matching expenses? Strictly speaking, a P/L contains items which must be matched. So if in order to earn your income you MUST incur certain expenses, then those can be knocked off against your income to arrive at a "profit", but if you're just trying to balance your household budget, you need to deduct other things, like home utilities, groceries, etc.