Profit and loss Account?

Question

Hi, need a bit of guidance, on the P&L account, what is the following
ADMIN EXPENSES
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
DIVIDENDS
NET LOSS/ RETAINED PROFIT

....and why would a PROFIT AND LOSS ACCOUNT show 2 columns? is one the year end bofore the one submitted> ie: year end 2006, showing a 2005 column.... new to accounts

Answer 1

You need to much info to explain on here.......

Admin expenses is usually office i.e. the office (paperwork)does no make any revenue, but you need the office staff to make the company work

Dividends are directors dividends,

Your gross profit is the amount you make before tax and before any expenses have been taken into account........

The profit and loss account I assume you are looking on an accounts package ..........It will show the year and the expected on some account packages .............

Answer 2

Admin expenses are the costs that the company incurred because of formalities e.g. legal costs
Profit on ordinary activities before taxation is the 'net proit' or profit after all major expenses have been paid. Ordinary activites denotes activities that is part of the company's product portfolio and not an outside investment e.g. a toy manufacturer's ordinary activty could be manufacturing toys and not investments in insurance companies. Net profit is one of the important elements you use in evaluating the performance of a company, especially when using ratios.
Dividends are payment made to the owners (shareholders) of the company. This is after all costs have been paid. Dividends are paid to keep shareholders happy and acts as a return to shareholders' investment in the company.
Net Loss/Retained profit is what left after all the things before/above this has been paid (think of this as the company's bank balance). What is left over in the company accounts will be transfered onto next year's balance.

Profit and Loss accounts have 2 coloumns so shareholders and analysts can make comparisons between 2 year's of performance. They also use this to make a cashflow statemen to show the liquidity (how cash rich the company is (low cash-rich companies are usually in trouble))).

Answer 3

The missing report that Rudy needs is the cashflow statement. It will show him the net effects of all of the transactions on the Cash account. If the P&L statement shows a profit and Cash in bank is overdraft, here are some of the reasons: 1) On Dec 31, Cash collections from the customers were advised to Rudy but was not received by the bank until later. 2) Rudy's failure to recognize expense from a prepaid expense account. 3) Unrecorded but paid expenses as of Dec 31.

Answer 4

Admin expenses is all your office stuff,the 2 different columns show what they want you to do against last year.
Most have a 4/5 % growth.

Answer 5

part i see accounting text book
part 2 for comparison

Answer 6

Do your own homework.
I suggest a short course in accounting.