Many trading and manufacturing organizations, there may be service businesses which sell knowledge and or skills such as solicitors, accounting firms, estate agents and advertising agencies. As these organizations do not trade, so no trading section is prepared for them. Income statement begins with the incomes from performing services such as income from fees, commission’s income, and income from services etc. Other items of incomes such as rent received, discount received are added to the main heads of income. Expenses will then be listed, totaled and then subtracted from revenue to give the net profit or net loss for the accounting period. The term gross profit has no relevance to service organizations.