Balance Sheet & Profit & Loss

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hoping that some one can advise me, Ive just finished Foundation via distant learning, just started Imtermediate and having difficult with taking trial balance figures to the balance sheet or profit and loss, is there any easy way of remembering which goes where ? any help would be appreciated :?
Many thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance Sheet & Profit & Loss

    I'm not sure there is an easy way really, if you keep at it I'm sure it'll fix itself in your memory eventually. As you carry on you should, hopefully, understand why balances go where they go on the final accounts which'll help even more.

    I suppose the only advice I can think of is to learn the basic structures

    P&L
    Sales-Cost of Sales=Gross Profit
    Gross Profit -Expenses=NetProfit
    Cost of Sales = Opening Stock+Purchases-ClosingStock

    B/S
    Fixed Assets + Net Current Assets/(Liabilites) = Net Assets
    Net Current Assets = Current Assets - Current Liabilities.
    Capital + Net Profit - Drawings = Net Assets

    Then it's a matter of learning/understanding which account falls under which heading.

    Not sure that's gonna be terribly helpful :?

    Chris

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Balance Sheet & Profit & Loss

    thanks CJC, any help advice is appreciated !!

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