Profit and Loss Account

• Computing
• Upper Secondary (Key Stage 4)
• BTEC

Profit and Loss Account

1. What do we mean by profit?
2. What do we mean by loss?
3. How is a business profit/loss calculated?

What do we mean by 'a given time period'?

1. Name 2 cost of sales
2. Name 2 expenses

Net profit

• A profit & loss account shows if the company made a profit or a loss.
  
• This is called Net Profit.
• If the net profit contains a minus or it is in a bracket, then the business made a loss.
  

What is the gross profit?
Revenue = £160,000
Cost of sales = £30,000
Expenses = £30,000

What is the net profit?
Revenue = £160,000
Cost of sales = £30,000
Expenses = £30,000

What is the gross profit?
Revenue = £110,000
Cost of sales = £100,000
Expenses = £30,000

What is the net profit?
Revenue = £110,000
Cost of sales = £100,000
Expenses = £30,000

The ___________ of BKL Ltd is £52,000.
It was calculated by subtracting the direct cost linked to selling products & services from the money made by the business.

1. Gross profit
2. Net profit
3. Cost of sales
4. Expenses

The ___________ of JoY Ltd is £267,000.
It was calculated by subtracting the costs of running the business not linked to selling products & services from the gross profit.

1. Gross profit
2. Net profit
3. Cost of sales
4. Expenses

The ___________ of KolaKola Ltd is £4,500.
It can be best described as all direct costs linked to selling products & services.

1. Gross profit
2. Net profit
3. Cost of sales
4. Expenses