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HMRC internal manual

Holding and Movements Alcohol Strategy Accounts

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        
  Turnover   1,956,456  
  Cost of Goods Sold   888,850 Total only
  Gross Profit   1,067,696  
  Interest Receivable   3302  
  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  
  Dividends   (319,000)  
  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.