Your Accounts

Your accounts

We have now explained the building blocks of every set of accounts. We will now show you how these are used to construct your profit and loss account and balance sheet.

Figures for   Description
Sales   Made by your business - even if not yet paid for.
Less   Less
Costs   Revenue expenditure - costs of goods and services used to generate, supply and support those sales - even if not yet paid for.
 
Profit   How much your business has really made.

Your balance sheet

Figures for   Description
Assets   What your Company OWNS
Less   Less
Liabilities   What your Company OWES
 
Net assets   Rough measure of how much your Company is "worth".

The bottom half shows where these net assets have come from i.e:-

Share Capital   How much money you and any other shareholders have invested in the Company.
Plus   Plus
Profits   How much profit you have earned but not spent since the business started.
 
Net assets   This will be the same figure as in the top half of your balance sheet - i.e. roughly how much your business is "worth".


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