BTEC Level 3 Unit 12 BTEC Book 1 Name: Daniil Chernat
Unit ttle: Unit 2 Assignment ttle: Bussiness resousrcees
P5) Interpret the content of a trading and proft and loss account in a company and the
balance sheet.
Proft and loss account
Profit and loss aceceousnt is the organiaaton inceomes and expenses dusring the trading period A P&L
provides informaton aboust whether a bussiness has made profit or loss over a past year In a P&L
aceceousnt there are three secetons Trading aceceousnt incelusdes the revenuse and direcet ceosts of the bussiness
Appropriaton Aceceousnt is the part of the profit and loss aceceousnt in an organiaaton
Sales
These are all of the goods or servicees sold dusring the aceceousntng period In aceceousntng, sales refer to the
revenuses whiceh an organiaaton sells For example, produscets, goods or any type of the servicees In the
profit and loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the sales were 8s,1,111
Cost of goods sold
Cost of goods sold are the total ceosts of produsceing all of the produscets will also appear in a P&L aceceousnt
This proceess incelusdes the ceost for materials, cereatng produscets and direcet labor for ceosts ussed to cereate
goods To cealceuslate the ceost of goods sold, its opening stocek +pusrcehases – celosing stocek In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the ceost of goods sold were 831s,111
Opening stock
Opening stocek is the nusmber of items or materials that an organiaaton has available in stocek for sale on
the first day of the trading year In the profit and loss aceceousnt for Cathyss Café for the year ending
31/12/211,, the opening stocek was 824,111
Closing stock
This is the amousnt of stocek lef that has not been sold by the end of the trading year In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the celosing stocek was 826,111
Gross proft
Gross profit = total sales – the total ceost of goods sold In the profit and loss aceceousnt for Cathyss Café for
the year ending 31/12/211,, the gross profit was 8,42,111
Total expenses
Total expenses are all the rusnning ceosts They are also known as fixed ceosts For example, the total
expenses of Cathyss Café are: telephone (8911), heat and light (8,,111), post (8111) In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the total expenses were 8471,3,1
Net proft
Net profit = gross profit + other inceome – expenses In the profit and loss aceceousnt for Cathyss Café for
the year ending 31/12/211,, the net profit before tax was 871,6,1
The most important figusres on the Profit and loss aceceousnt for Cathyss ceafé are: Sales, gross profit, Net
profit before tax
Unit ttle: Unit 2 Assignment ttle: Bussiness resousrcees
P5) Interpret the content of a trading and proft and loss account in a company and the
balance sheet.
Proft and loss account
Profit and loss aceceousnt is the organiaaton inceomes and expenses dusring the trading period A P&L
provides informaton aboust whether a bussiness has made profit or loss over a past year In a P&L
aceceousnt there are three secetons Trading aceceousnt incelusdes the revenuse and direcet ceosts of the bussiness
Appropriaton Aceceousnt is the part of the profit and loss aceceousnt in an organiaaton
Sales
These are all of the goods or servicees sold dusring the aceceousntng period In aceceousntng, sales refer to the
revenuses whiceh an organiaaton sells For example, produscets, goods or any type of the servicees In the
profit and loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the sales were 8s,1,111
Cost of goods sold
Cost of goods sold are the total ceosts of produsceing all of the produscets will also appear in a P&L aceceousnt
This proceess incelusdes the ceost for materials, cereatng produscets and direcet labor for ceosts ussed to cereate
goods To cealceuslate the ceost of goods sold, its opening stocek +pusrcehases – celosing stocek In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the ceost of goods sold were 831s,111
Opening stock
Opening stocek is the nusmber of items or materials that an organiaaton has available in stocek for sale on
the first day of the trading year In the profit and loss aceceousnt for Cathyss Café for the year ending
31/12/211,, the opening stocek was 824,111
Closing stock
This is the amousnt of stocek lef that has not been sold by the end of the trading year In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the celosing stocek was 826,111
Gross proft
Gross profit = total sales – the total ceost of goods sold In the profit and loss aceceousnt for Cathyss Café for
the year ending 31/12/211,, the gross profit was 8,42,111
Total expenses
Total expenses are all the rusnning ceosts They are also known as fixed ceosts For example, the total
expenses of Cathyss Café are: telephone (8911), heat and light (8,,111), post (8111) In the profit and
loss aceceousnt for Cathyss Café for the year ending 31/12/211,, the total expenses were 8471,3,1
Net proft
Net profit = gross profit + other inceome – expenses In the profit and loss aceceousnt for Cathyss Café for
the year ending 31/12/211,, the net profit before tax was 871,6,1
The most important figusres on the Profit and loss aceceousnt for Cathyss ceafé are: Sales, gross profit, Net
profit before tax
