P and L and Balance sheet

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Does anyone know any easy way to remember how to set out the profit and loss and balance sheet. If you do please e-mail me jennywilliamsonuk@yahoo.com.<BR><BR>Thanks<BR><BR>Jen

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    P and L and Balance sheet

    Hi Jen.<BR><BR>The only way i can remember is this:<BR><BR>Trading, Profit and Loss Account is all about your trading activities and if you've made a profit. So in here you need your sales, cost of sales, expenses, etc.<BR><BR>The Balance Sheet reflects the accounting equation: Assets= Liabilities+ Capital. So in here you need anything which is an Asset (e.g. motor vehicles), Liability (e.g loan) or Capital (e.g. Partners investment).<BR><BR>I don't know of any other methods of remembering this, so hopefully this will help.<BR><BR>Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    P and L and Balance sheet

    Now don't laugh, but this is how I remember it:<BR><BR>PLIE BALS<BR><BR>PLIE stands for <BR>Profit Loss Income Expenses<BR><BR>BALS stands for<BR>Balance Assets Liabilities Sheet.<BR><BR>Crazy I know but it works for me!!<BR><BR>Littledoe

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