need an easy method
jackiepowell
Registered Posts: 72 Regular contributor ⭐
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
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
0
Comments
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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!0 -
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 clockwise0 -
Before expenses you also have sundry income e.g rent received, discounts received. But it is just a case of practice practice practice!0
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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...)0
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