HMASAC2160 - Accounts: The modified P&L Account
What does the modified P&L account look like?
The following table shows the detail, which is normally contained in a modified P&L account:
| An Excise
Trader Limited
Profit and Loss Account for the year ending 31 December xxxx |
|||
| Turnover | 1,956,456 | ||
| Cost of Goods Sold | 888,850 | Total only | |
| Gross Profit | 1,067,696 | ||
| Interest Receivable | 3302 | ||
| 1,070,998 | |||
| Administrative Expenses | (569,187) | Total only | |
| Profit on ordinary activities before taxation | 501,811 | ||
| Tax on profit on ordinary activities | (178,338) | ||
| Profit on ordinary activities after taxation | 325,473 | ||
| Dividends | (319,000) | ||
| Retained profit transferred to reserves | 6,473 | ||
| Retained profit brought forward | 261,750 | ||
How can I use the information provided in the modified P&L Accounts?
This is a simplified document and has limited value for examination purposes, as it does not include the detailed analysis of the detailed P&L account. However, it does show the value of dividends to be paid. For audit purposes you should request a copy of the detailed profit and loss account.
