Essay on The Structure of a Profit and Loss Account

Essay on The Structure of a Profit and Loss Account

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The Structure of a Profit and Loss Account

Creating a Profit and Loss Statement:

This profit and loss statement shows or consolidates our understanding
of the structure of the profit and loss statement.

The cells displaying zeroes contain formulae to perform automatic
calculations on my accounts/data. It is best not to type into these
cells, as you it will erase the formulae. Also you should put figures
in the rows beneath each section heading. Any values entered in the
same row, as a heading will not be included in the automatic
calculations. This example is how I will manage recording or analysing
my profit and loss figures. On the next page it shows us how figures
would compromise if they were high and low.

METHOD/AMMOUNTS


List of Items

£

Stock Purchases During the Period

90,000

Miscellaneous Expenses

1,900

Interest Expenses

3,000

Sales

174,000

Rent from Sub-Letting Part of Workshop

400

Provision for Income Tax

3,275

Opening Stock

...

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