ABSTRACT
As mentioned above, the profit and loss account is normally published as a single statement: for example, see the Precision Locks Limited profit and loss account on page 26.
GENERAL TRADING LIMITED Trading, profit and loss, and appropriation account for the year ended 31 March 2001
(a) Trading account £’000 Turnover 2 400 Cost of sales 1 500 Gross profit 900 Distribution costs 580 Administrative expenses 140 Operating profit 180
(b) Profit and loss account Operating profit 180 Interest expense 20 Profit before tax 160 Taxation on profit 50 Profit after tax 110
(c) Appropriation account Profit after tax for the year 110 Dividends 60 Retained profit, transferred to reserves 50
