Task 3
Matt and Katie will also need to prepare a Profit and Loss Account for the same period - this includes the costs of running the business over a specific period of time, usually a year, and combined with the income for the period gives a useful statement on the health of the business.
Whilst Matt and Katie may be the only shareholders they are still required to produce their accounts and there will be other people who will want to see a copy, especially the Inland Revenue (tax man)!
Use the following
information to draw up the Account:
|
|
£s |
|
Wages |
3200 |
|
Rent |
6000 |
|
Rates |
1150 |
|
Heating
and Lighting |
900 |
|
Advertising |
1790 |
|
Depreciation |
620 |
|
Administration |
300 |
|
Other
Expenses |
115 |