Statement of Profit or Loss for the Year

Introduction:
In order to prepare a statement of profit or loss for Mr. Vasudev's business, it is important to have proper records of the financial transactions. However, since Mr. Vasudev does not maintain proper records, we will need to rely on the information provided to us in order to calculate the profit or loss for the year.

1. Revenue:
The first step in preparing a statement of profit or loss is to determine the revenue generated during the year. Revenue refers to the total amount of money earned from the sale of goods or services. It is essential to have a detailed breakdown of the revenue from different sources in order to accurately calculate the profit or loss.

2. Cost of Goods Sold:
Next, we need to determine the cost of goods sold (COGS). COGS refers to the direct costs associated with producing or acquiring the goods or services sold by the business. This includes the cost of raw materials, direct labor, and any other direct expenses incurred in the production process. Without proper records, it may be challenging to accurately determine the COGS.

3. Operating Expenses:
In addition to the COGS, it is important to consider the operating expenses incurred by the business. Operating expenses include rent, utilities, salaries, advertising, and other expenses necessary to run the business. Without proper records, it may be difficult to accurately determine the operating expenses.

4. Non-operating Income and Expenses:
Non-operating income and expenses refer to any income or expenses that are not directly related to the core operations of the business. This may include interest income, rental income, gains or losses from the sale of assets, etc. Without proper records, it may be challenging to accurately determine the non-operating income and expenses.

5. Calculation of Profit or Loss:
Once we have determined the revenue, COGS, operating expenses, and non-operating income and expenses, we can calculate the profit or loss for the year. The formula to calculate profit or loss is:

Profit (or Loss) = Revenue - COGS - Operating Expenses +/- Non-operating Income/Expenses

Conclusion:
In conclusion, preparing a statement of profit or loss for Mr. Vasudev's business without proper records can be challenging. However, by utilizing the information provided, we can still calculate the profit or loss by considering the revenue, COGS, operating expenses, and non-operating income and expenses. It is important for Mr. Vasudev to maintain proper records in order to accurately assess the financial performance of his business and make informed decisions.