The profit and loss account is a summary of trading income and expenditure for the accounting period. An example of profit and loss account is shown below.
The modern financial accounts present the profit and loss account in a vertical column form. It’s usual to dispense with pence and just to show round pound figures. Often comparative figures for the previous year are shown alongside the figure for the current year. The layout for the profit and loss account may vary slightly according to the type of business.
BESTEVER LIMITED
|
TRADING AND PROFIT AND LOSS ACCOUNT
|
YEAR ENDED 31 MARCH 2008
|
| |
|
2008
|
|
2007
|
| |
£ |
£
|
£
|
£
|
| SALES |
|
114,307
|
|
106,962
|
| Opening stock |
21,533
|
|
16,521
|
|
| Purchases |
84,239
|
|
80,955
|
|
| Closing stock |
(25,757)
|
|
21,533)
|
|
| |
|
|
|
|
| COST OF SALES |
|
80,015
|
|
75,943
|
| |
|
|
|
|
| GROSS PROFIT |
|
34,292
|
|
31,019
|
| LESS: OVERHEADS EXPENDITURE |
|
|
|
|
| Salaries and wages |
5,794
|
|
5,444
|
|
| Motor expenses |
755
|
|
802
|
|
| Repairs and renewals |
1,514
|
|
838
|
|
| Telephone |
249
|
|
122
|
|
| Printing and stationery |
1,155
|
|
607
|
|
| Heating and lighting |
646
|
|
570
|
|
| Insurance |
425
|
|
567
|
|
| Rates |
1,524
|
|
1,392
|
|
| Hire Purchase Interest |
111
|
|
-
|
|
| Bank interesr and charges |
179
|
|
445
|
|
| Discount allowed |
289
|
|
272
|
|
| Accountancy fees |
665
|
|
650
|
|
| Sundry expenses |
604
|
|
554
|
|
| Depreciation |
1,398
|
|
1,216
|
|
| Loss on sale of assets |
881
|
|
-
|
|
| |
|
|
|
|
| |
|
16,189
|
|
13,479
|
| |
|
|
|
|
| NET TRADING PROFIT |
|
18,103
|
|
17,540
|
| ADD: SUNDRY INCOME - bank interest |
|
190
|
|
277
|
| |
|
|
|
|
| NET PROFIT FOR THE YEAR |
|
18,293
|
|
17,817
|
| |
|
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Canterbury Accountancy - Helping businesses and companies to understand accounting records.
