RS Aggarwal Solutions for Class 8 Chapter 10 explains the Concept of “Profit and Loss”. A profit and loss summary is a financial statement outlines revenues, costs and expenses to show how much money a company is earning and losing during a period. Expenses: An expense is a money the company paid out. Total Income: Total income is the amount the company earned or lost while operating the business. As the Chapter is about Profit and Loss, now let us understand the concept of profit and loss in our daily life, as and when we purchase goods we generally use the statements such as cost price, selling price, profit, loss, and discount. These statements are financial statements that summarise the revenues, cost and expenses incurred during a specified period, usually a fiscal quarter or a year.