I tried to skim through the Fourth Schedule of Companies Ordinance, 1984, but there was no categorical instruction of making Profit and Loss Account in form of Income Statement, rather the verbatim term (Income Statement) is not mentioned at all. However, it does segregate different kinds of expenses (administrative expenses, other operating expenses). But, you can easily segregate these expenses in form of a T-Account also. So, why can't we go with T-account? I do not have Accounting background, so I am obviously speaking from a somewhat layman-viewpoint... shall be grateful if you clarify.

Secondly, when Balance Sheet is presented in form of statement, then the final balance will not be equal to the balance had the Balance Sheet been presented in a t-format? This is because in statement form, we first subtract current liabilities to calculate Net Assets, which are then shown to be equal to Capital, Loan, etc.? While in t-format current liabilities and capital are on the same side. Kindly clarify this too.

Regards