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Final Accounts Final Accounts Syllabus 3 5 Final Accounts You will


									Final Accounts

             Final Accounts
You will be expected to know your way around:

Accounts for limited companies (income
 Trading account
 Profit and loss account
 Appropriation account
 Balance sheets
           Final Accounts

Why are Final Accounts drawn up?

What do they consist of?
            Trading Account
The syllabus is a little behind times here however
  investigate what is the Trading Account on Profit
  and Loss

Be careful Trading Accounts are set up to allow
  people to buy Shares but we are not talking
  about those here!!!!!!!

Check Out
    Profit and Loss Statement
Define The Profit and Loss Statement

What period of time does it usually cover?
   Profit and Loss Statement

In the Interactive Textbook identify the
  Trading Account in the Profit and Loss for
  Forlorn Sails Plc
    Profit and Loss Statement

What is distinctive about the Title (Which
 must be included in every account)/

Hint: Time period is the key here.
    Profit and Loss Statement

What is always the first item on P and L?

What are alternaitive names for this item?
      Profit and Loss Statement
What is the second item?

Define this

Why is this negative?

When the subtraction is complete what have we found?

What is the relationship with this and the Trading Account?
           Profit and Loss
You need to investigate the nature of some
  costs explain and give examples for the
Direct Cost
Therefore what is an indirect cost?
What are fixed Costs?
What are Variable Costs?
What are Overheads?
    Profit and Loss Statement
Next we need to take away other expenses:

Give examples of these other expenses

When we subtract these we have found
    Profit and Loss Statement
Now we need to take away two more items:


To find what?
     Profit and Loss Statement
The bottom section of the P and L shows where
  the profits go:

What is this account called?

What are the alternative uses of profits?

What are dividends?

What is retained profit?
    Profit and Loss Statement
Now get yourself familiar with the P and L
 using the Interactive Textbook

What is its format?

What do the terms mean?

What are the different kinds of Profit?
      Profit and Loss Statement

You now know the P and L account

Now move on to the Balance sheet.


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