P5 - Profit and Loss

P5 – Profit & Loss and Balance Sheet

Profit and Loss Sheet:
| |£ |£ |
|Sales: | |80,000 |
| | | |
|Less Cost of Sales: | | |
|Opening stock |32,000 | |
|Purchases |6,000 | |
|Less Closing stock |(5,000) |33,000 |
| | | |
|Gross Profit: | |47,000 |
| | | |
|Less Expenses: | | |
|Rent and Rates |10,000 | |
|Advertising |500 | |
|Miscellaneous |500 | |
|Utility |1,000 | |
|Salary |20,000 |32,000 |
| | | |
| | | |
|Net profit before Tax: | |15,000 |

The table above shows the profit and loss information sheet. And on this includes gross profit for Surbiton Art Works which stands at £47,000. to calculate this figure you subtract the less cost of sales from the value of sale.

The cost of sales is calculated by adding opening stock which is £32,000 to purchases during the year and in this case it is £6,000 and this figure added to the opening stock gives you the total of £38,000. and to calculate the cost of sales you have to subtract the closing stock which is £5,000: £38,000-£5,000= £33,000. Then to get the gross profit you take away the