Read e-book online Company Accounts PDF

By Roger Oldcorn (auth.)

ISBN-10: 0333662652

ISBN-13: 9780333662656

ISBN-10: 1349140929

ISBN-13: 9781349140923

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Extra resources for Company Accounts

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More than £50 000 but less than £150 000. Between £1 50 000 and £300 000. More than £300 000. The answer will depend on which country you live in because the value of land rose at different rates in different countries over this period. If the land in question is in Great Britain the value is likely to have risen to well over £300000 by now. The company could ignore all this and simply put in the original cost or any value it chooses, but it must be careful not to undervalue itself; that is dangerous and we will see why later.

Format 1 Turnover £000 100 Notes Sometimes called sales; also: operating expenses Cost of sales 60 Gross profit (or loss) 10 Distribution costs Administrative expenses 18 40 A special use of the word profit 28 This line could be called total operating expenses 12 This line is called trading or operating profits Other income Interest payable Tax on profit of ordinary activities Profit (or loss) on ordinary activities Extraordinary items Profit (or loss) for the financial year 3 The Act spells out five separate items here 15 This line is called total profit or total income 5 10 This is net profit before tax 5 5 I These can give more or less profit 6 Points to note about the profit and loss account • The format shown above is traditional, although until the 1981 Act it was not necessary to show the 'cost' items in the published accounts.

Can you think of three different sources he might have approached for more money? There are many different answers to this question, but your choice will be included somewhere in this general list: Other sources of money 1 2 3 Friends and relations. Banks. g. pension funds, large firms). 4 Government departments; local authorities. 5 Suppliers. 6 Customers. Let us have a closer look at each of these sources in turn. 1 Money from Individuals There are three ways a business can obtain money from individualswhether they are relatives, friends or others: • as a gift; • as a loan; • as a part stake in the firm.

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Company Accounts by Roger Oldcorn (auth.)


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