The Trading and Profit & Loss Account
This is the basic outline of a Trading and profit and Loss Account:
| £ | £ | £ | |
|---|---|---|---|
| SALES | |||
| minus Returns Inward | |||
| MINUS COST OF SALES | |||
| opening Stock | |||
| plus Purchases | |||
| minus Returns Outward | |||
| plus Carriage Inwards | |||
| minus Closing Stock | |||
| GROSS PROFIT | |||
| LESS EXPENSES | |||
| wages | |||
| light and heat | |||
| printing and stationary | |||
| telephone | |||
| carriage outwards | |||
| advertising | |||
| overheads | |||
| discount allowed | |||
| motoring expenses | |||
| interest payable | |||
| PLUS OTHER INCOME | |||
| commission received | |||
| discount received | |||
| NET PROFIT |
*** Print this off now and keep as a revision reminder. ***
So let's try completing PEPE'S TRADING & PROFIT and LOSS ACCOUNT