P+L Sheets and Balance Sheets

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hiya again everyone

Im just trying to learn how to prepare the final accounts and was wandering if anyone can explain why there are three money columns? I have always gone by the rule that debits go in the left hand column and credits in the right but if there are three columns im not sure where to put all my figures. please, please someone help cos im all confused!!!!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    You will see different layouts for the income statement as you go along. I always use two columns, one is to indent adjustments such as C.O.S.
    The balance sheet will show Cost, Accumulated depreciation, and NBV as standard.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Hi!

    Don't think of the P&L account (IAS - income statement) and balance sheet (IAS - ??) like a TB where you have DR on left and CR on right.

    It is simply laying out the totals - for example:

    Turnover................£100k
    Cost of sales........£50k

    Gross profit...................... £50k

    It is not showing debits of £150k and credits of £50k, it is simply the layout (ignore the dots!).

    It is just showing that the gross profit of £50k is made up of turnover £100k less cost of sales £50k.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    PP22 - FYI Balance sheet under IAS has not changed names.

    Tried to put usual layout example, didnt post correctly


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Ah good - that's one less thing to remember then! :-)

    Ah yeah - just realised mine hasn't worked, will try to edit it...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    PP22

    I have a list of terminology changes somewhere if you want them Ill try and dig it out

    The only ones I can remember off top of my head are

    Stock - Inventories
    P&L - Income Statement

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Yeah that would great if you have it! Thanks! Will PM my e-mail...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Hi

    The Terminology changes for Technician level are as follows;

    Sales Ledger - Accounts Receivable/Receivables Ledger
    Purchases Ledger - Accounts Payable/Payables Ledger
    Fixed Assets - Non-current assets
    Tangible fixed assets - Property, Plant & Equipment
    Intangible Fixed assets - no change
    Stock - Inventory
    Debtors - Receivables
    Creditors - Payables
    Long term liabilities - Non current liabilities
    Debenture - Loan stock
    Capital and reserves - Equity
    P&L Account - Income Statement
    Turnover/Sales - Revenue
    Taxation - Tax Expense

    Hope this doesn't confuse, and remember the terminology is for Technician level only.

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Thanks for that Tracy - I've pinched it and put it in my AAT wiki.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Very useful - thanks! :-)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:P+L Sheets and Balance Sheets

    Your welcome!

    Tracy

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