need an easy method

jackiepowell

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

sdv

jackiepowell wrote: »

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

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

Before expenses you also have sundry income e.g rent received, discounts received. But it is just a case of practice practice practice!

Marga

kellyriddell wrote: »

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...)