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HMRC internal manual

Holding and Movements Alcohol Strategy Accounts

HM Revenue & Customs
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Annexes: Glossary

Term Description
## A  
Administrative Expenses Relates to expenses incurred by the business, in addition to direct trading expenses on the profit and loss account.
Auditor Has responsibility for auditing the prepared accounts and making a judgment as to the credibility thereof.
## B  
Balance Sheet Is a snapshot of the business assets and liabilities at a moment in time, i.e. the financial year-end.
## C  
Capital The amount of money introduced into the business.
Creditors This represents the monies owed by the business at the date the accounting year-end.
Current Assets Can be converted to cash in the course of business.
Current Liabilities Amounts owed by the business payable within 1 year.
## D  
Debtors This represents the monies owed to the business at the date the accounting year-end.
Directors Employees of the business.
Director’s remuneration This is the wages paid to the directors as employees of the business.
Dividends Payments made to the shareholders, after profit, as a reward for investing in the company.
Drawings Are the money taken from the business by the sole-proprietor or partners for their own use. This value will also include any goods removed from the business for personal use.
## F  
Fixed assets Assets acquired for the use of the business, but not for resale.
## G  
Gross profit This is the trading profit of the business, i.e. sales less cost of goods sold.
## N  
Net profit Is the profit left to the business after all expenses have been deducted.
## O  
Other Income The following are examples of other income received and the implications with regards to credibility.
## P  
Profit and Loss Account (P&L) Shows the transactions of a business over a period of time.
## S  
Shareholders The actual owners of the business.