In the United Kingdom the regulation for partnerships, sole traders, charities and chartered institutes allows a degree of flexibility in the presentation of profit and loss accounts. However there is tight regulation over the presentation of limited companys, which is set out in the Companies Act 1989[?]. Example A typical profit and loss account for a limited company may look similar to the one shown below.
Profit and Loss Account for the year ended date - month - year
Sales............................................................10,217,880 Cost of sales[?].....................................................5,468,000 _________ Gross profit[?]......................................................4,749,880 Net Operating Expenses[?] (see note 1)...............................2,333,605 __________ Profit on ordinary activities before taxation and interest........2,416,275 Interest payable......................................................5,250 __________ Profit on ordinary activities before taxation.....................2,411,025 Taxation..........................................................1,080,000 __________ Profit for the financial year.....................................1,331,025 Dividends[?] Paid......................................................140,000 Dividends[?] Proposed...................................................75,000 __________ Retained Profit[?] for the financial year............................1,116,025
Note 1 Operating Expenses Depreciation[?]................1,211,426 Wages[?] and NI[?]..................908,110 Administration expenses.......126,390 Distribution Costs.............87,690 _______ 2,333,605
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