Accounts: The modified P&L Account
What does the modified P&L account look like?
The following table shows the detail, which is normally contained in a modified P&L account:
|An Excise Trader Limited|
|Profit and Loss Account for the year ending 31 December xxxx|
|Cost of Goods Sold||888,850||Total only|
|Administrative Expenses||(569,187)||Total only|
|Profit on ordinary activities before taxation||501,811|
|Tax on profit on ordinary activities||(178,338)|
|Profit on ordinary activities after taxation||325,473|
|Retained profit transferred to reserves||6,473|
|Retained profit brought forward||261,750|
How can I use the information provided in the modified P&L Accounts?
This is a simplified document and has limited value for examination purposes, as it does not include the detailed analysis of the detailed P&L account. However, it does show the value of dividends to be paid. For audit purposes you should request a copy of the detailed profit and loss account.