Simplified Module on Statement of Comprehensive Income (SCI)
What is a Statement of Comprehensive Income (SCI)?
The Statement of Comprehensive Income (SCI) shows the financial performance
of a business over a specific period. It tells us if a business made a profit or a loss.
SCI for a Service Business vs. Merchandising Business
1. Service Business
A service business earns income by providing services (e.g., cleaning, consulting, or
teaching).
Key Elements of the SCI for a Service Business:


Service Income: Revenue from services provided.
Operating Expenses: Costs incurred to run the business (e.g., salaries, rent,
utilities).
Example for a Service Business:
Adha's Cleaning Services earned ₱50,000 from cleaning services in January. It spent
₱10,000 on salaries, ₱5,000 on rent, and ₱2,000 on utilities.
Single-Step SCI for Adha's Cleaning Services:
Description
Amount
(₱)
Revenues
Service Income 50,000
Expenses
Salaries
10,000
Rent
5,000
Utilities
2,000
Total Expenses 17,000
Net Income
33,000
2. Merchandising Business
A merchandising business earns income by buying and selling products (e.g., grocery
stores or clothing shops).
Key Elements of the SCI for a Merchandising Business:




Sales: Revenue from selling goods.
Contra Sales Accounts: Discounts or returns (e.g., Sales Returns and
Allowances).
Cost of Goods Sold (COGS): Cost to purchase or produce goods sold.
Operating Expenses: Includes selling and administrative expenses.
Example for a Merchandising Business:
Adha’s Fashion Shop sold products worth ₱200,000 in January. It gave ₱5,000 in
discounts and had returns worth ₱3,000. The cost of goods sold was ₱120,000.
Operating expenses included ₱20,000 for rent and ₱15,000 for advertising.
Multi-Step SCI for Adha's Fashion Shop:
Description
Amount (₱)
Sales
Gross Sales
200,000
Less: Sales Returns and Discounts 8,000
Net Sales
192,000
Less: Cost of Goods Sold (COGS) 120,000
Gross Profit
72,000
Operating Expenses
Rent
20,000
Advertising
15,000
Total Operating Expenses
35,000
Net Income
37,000
Practice Exercises
1. Service Business Exercise
Mary’s Tutoring Services earned ₱40,000 in tutoring fees in February. It spent
₱8,000 on salaries, ₱4,000 on supplies, and ₱2,000 on utilities.

Prepare a single-step SCI.
2. Merchandising Business Exercise
James’ Gadget Shop sold ₱300,000 worth of gadgets in March. Sales returns
were ₱10,000, and discounts were ₱5,000. The cost of goods sold was ₱200,000.
Operating expenses included ₱30,000 for rent and ₱20,000 for salaries.

Prepare a multi-step SCI.