own business
jkc
Registered Posts: 166 Dedicated contributor 🦉
hi ive just had a question about a ( very)recent start up business owned by member of my familly
do you add the amount of value added stock to net profit.
also i have loss figure but most of money made has gone into stock does it mean we have still made a loss
or will it increase the profit?
need some help with profit and loss.
not started fra yet so a bit lost.
jkc.
do you add the amount of value added stock to net profit.
also i have loss figure but most of money made has gone into stock does it mean we have still made a loss
or will it increase the profit?
need some help with profit and loss.
not started fra yet so a bit lost.
jkc.
0
Comments
-
Not sure I understand that but
Any stock left at the end of the year is an asset which goes both on the p and l and balance sheet. It is deducted from the cost of sales ie
Sales. X
Cos
Purchases. X
Less closing stock. (x)
(x)
Gross profit. X
Less expenses (x)
Net profit/loss X0 -
Oh that PandL didn't come out as I planned. Sorry I'm using my iPhone which is hard to type with !0
-
hi thanks
so
sales
less cost of purchases
less closing stock
= gross profit
less expenses
= net profit
the muds a bit clearer now thanks again
jkc0 -
Sales
Less cost of sales (opening stock + purchases - closing stock)
= Gross Profit
Less overheads
= Net Profit0 -
Yeah what the above posts says sorry that p and l really didn't make sense. You minus the closing stock from purchases effectively adding to gross profit0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership