Profit or Loss ???
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I posted a question allready but am even more confused.<BR>Ive been loking at the yr end acc and am trying to dertimne the following. o/b of the p&l is a credit - is it a PROFIT OR LOSS, balancing fig on the p&l is a credit is it a profit or less.<BR>Thanks guys
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Profit or Loss ???
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Profit or Loss ???
Hi Jhill,<BR><BR>I know in my post to your previous question I stated that if the balancing figure in the ETB was a DR then it is a profit - I still stand by that. <BR><BR>If you are looking at the P & L for the year and there are more CR than DR then there is a profit. In order to transfer that to the Balance Sheet an adjustment needs to be made - so the way I see it you DR the P&L (with the balancing figure) and then CR the balance sheet.<BR><BR>E.g. <BR><BR>Sales 1000<BR>Purchases 500<BR><BR>Profit 500<BR><BR> 1000 1000<BR><BR>Therefore you DR 500 from P & L and CR 500 to Balance Sheet<BR><BR>Hope this helps<BR><BR>If anybody thinks I am wrong please correct me (I'm still learning)0 -
Profit or Loss ???
EddyB<BR><BR>Ive been through all awnsers and im pretty sure your wright - youe last statement really cleared it up for me.<BR>Thanks0 -
Profit or Loss ???
will done EddyB<BR>0