need an easy method

Any one have an easy method on how to remember the Profit and Loss and Balance sheet format??

4th time of sitting this. Need to pass it this time! I remember most things just the format of the p and l and balance sheet..

Thanks

Jackie

Comments

  • sdv
    sdv Registered Posts: 585
    Any one have an easy method on how to remember the Profit and Loss and Balance sheet format??

    4th time of sitting this. Need to pass it this time! I remember most things just the format of the p and l and balance sheet..

    Thanks

    Jackie

    Practice! Practice! Practice!
  • Marga
    Marga Registered Posts: 981
    hey a good way of remembering it for me is


    P&L

    Sales right column (remember the double entry? sales are always in the credit side)

    Trade Area underneath in the left column

    Opening stock
    Purchases
    Closing Stock

    Gross Profit right column

    Expenses Area in the left column

    Wages
    Rent
    Misc Expenses etc


    Net profit right column

    So if you would join right left right left right you have a W but turned 90 degrees clockwise
  • kellyriddell
    kellyriddell Registered Posts: 84 ? ? ?
    Before expenses you also have sundry income e.g rent received, discounts received. But it is just a case of practice practice practice!
  • Marga
    Marga Registered Posts: 981
    Before expenses you also have sundry income e.g rent received, discounts received. But it is just a case of practice practice practice!


    yeah thats true .... so remember whats profit and whats loss


    Loss left Profit Right


    (L for loss comes before P of Profit in the alphabet...)
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