Accounts summary?

penny Toolan

Could someone more knowledgeable please check if my understanding of accounts summary figures for sole traders year is correct?

1. (Total sales + stock held at year end) - (cost of sales) = Gross Profit

2. Gross Profit - other expenses - motor expenses = Net Profit

3. Net Profit - capital allowance for van = Taxable Profit or Loss

I've made personal deductions for motor and heat/light etc before including them.

Are all above assumptions correct? Any help would be greatly appreciated, as this is my first year doing this, and althought numbers are small, I need to get it right first time!

Thanks,
Penny

kluivert

Profit and Loss for the year end **/**/**

Revenue

Sales 100

Total Sales 100


Cost of Sales


Opening Stock 0
Purchases 50
50
Less: Closing Stock 25

Gross Profit 25

Administration Expenses

Light and Heat
Motor Expenses
Wages
Sundry
Depreciation

Net Proft

blue4ever

make sure as well that you claim for everything - dont forget that if you work away from home you are intitled to calim per day that you do.

penny Toolan

Thanks everyone for your replies - much appreciated