Statement of Comprehensive Income
(Profit & Loss Account)
If income is higher than expenses the business will make a
profit
If income is lower than expenses the business will make a loss
A profit or loss statement will look like this:
£
Sales
Less cost of goods sold
Gross Profit
Less Expenses
Rent
Heat and Light
Wages
Travel
Advertising
£
100,000
60,000
40,000
2,500
1,700
7,000
1,500
2,000
Net Profit
14,700
25,300
Cost of goods sold is the cost to the business of the items sold
1
Activity 1
Cost of goods sold
Heat and Light
Net Profit
Administration
Electricity
Sales
Rent
Wages
Gross Profit
£
75,000
3,000
25,500
4,000
2,000
120,000
2,500
8,000
45,000
Activity 2
Cost of goods sold
Heat and Light
Net Profit
Administration
Electricity
Sales
Rent
Wages
Gross Profit
£
68,000
4,000
24,500
5,000
3,000
115,000
3,500
7,000
47,000
2
Activity 3
Cost of goods sold
Heat and Light
Net Loss
£
72,,000
4,000
(4,500)
Administration
3,000
Electricity
3,000
Sales
90,000
Rent
4,500
Wages
8,000
Gross Profit
18,000
3
Documents used for Sales and Purchases
Purchase order
Purchase Order
Whitehill Superstores
28 Whitehill Park
Benham DR6 5LM
Tel 0303446
Fax 0303447
To: Southfield Electrical
Industrial Estate
Number:
32011
Date:
5.01.2012
Benham
DR6 2FF
Delivery Address: As Above
Product
Quantity
Description
Code
4425
Unit list price
£
6
Zanpoint Dishwasher
£200
(excluding VAT)
Authorised by:………………………….. Date:……………………………..
The detail required on a purchase order form includes:






Unique, sequential number
Delivery address
Description of goods
Goods code
Unit price
Authorisation to issue
Who issues the purchase order, the buyer or seller of goods?
4
Delivery Note
Delivery Note
Delivery Address
Whitehill Superstores
28 Whitehill Park
Benham DR6 5LM
Tel 0303446
Fax 0303447
Number:
34619
Order Number:
Date:
Product
32011
6.01.2012
Quantity
Description
6
Zanpoint Dishwasher
Code
4425
Received by:………………………….. Print Name:……………………….
The detailsDate:……………………………..
required on a Delivery note include:





Delivery Address
Own unique sequential number
Purchase order number
Description of goods
Is left unsigned for the person receiving the goods to sign on delivery
Why is the delivery note important?
5
Invoice
INVOICE
Southfield Electrical
Industrial Estate
Benham
DR6 2FF
Tel: 303379 Fax: 0303152
VAT Reg: 0264227449
Invoice No
Account No
Order No
Date/tax point
5634
SL 44
32011
07.01.2012
Quantity
Price
£
Invoice to
Whitehill
Superstores
28 Whitehill Park
Benham DR6 5LM
Code
Description
4425 Zanpoint Dishwasher
6
Goods total
VAT 20 %
Invoice total
200
Total
£
1,200.00
1,200.00
240.00
1440.00
Terms: Net 30 days
6
Debit Note – completed to confirm delivery
Credit Note
CREDIT NOTE
Southfield Electrical
Industrial Estate
Benham
DR6 2FF
Tel: 303379 Fax: 0303152
VAT Reg: 0264227449
Credit note No 08641
Account No
SL 44
Order No
32011
Date/tax point 08.01.2012
Invoice to
Whitehill
Superstores
28 Whitehill Park
Benham DR6 5LM
Code
Description
Quantity
Price
£
Total
£
4425
Zanpoint Dishwasher
1
200
200
Reason for credit note:
Goods total
200
VAT 20 %
Invoice total
40
240
Damaged Goods
7