Profit and loss statement - what is it?
Zur Profit and loss statement (P&L) Are basically all Merchants committed. So both Corporations as well as partnerships as well as individual traders. They are also required to double-entry bookkeeping and to balance sheets. Die Profit and loss statement Will then Part of balance sheet. Freelancers and advertisers as well as sole traders are exempted from the obligation with turnover limits of 800,000 euros and profit limits of 80,000 euros per year. Instead of P&L Do they make a Surplus income statement (YOURS).
At the balance sheet The capital is on the right side of the T-account as liabilities. Equity is broken down into expenditure and income in the income statement. For this purpose, income and expenses are divided into Income and expense accounts posted. The profit is then calculated from this. A net income represents a profit, and a loss for the year represents a loss. While the balance sheet is about how much equity is at End of a fiscal year is, the P&L shows how it is made up.
How is the P&L structured?
Die Presentation can be carried out in batches or account form become. Die Squadron form starts with income, followed by operating expenses for materials and personnel, for example. This includes interest from income and expenses, from which you obtain the financial result. Taxes and potential reserves are deducted from this in order to calculate the profit or loss.
At the Account form Will income and expenses compared in tabular form with the debits on the left and having on the right.
The scale form is only required for corporations in accordance with Section 275 (1) HGB. Die Form can therefore be freely selected. However, they must Principles of proper accounting complied with become. This must therefore be clearly arranged and comprehensible be. It must also be created truthfully and completely.
Order of posts
The items on the accounts can after the total or Cost of sales method structured become. At Cost of sales method On the income side, manufacturing costs are deducted from sales revenue in order to determine gross sales. Sales and administrative expenses are deducted from this to calculate the profit.
At Total cost method Inventory changes are added to sales. All expenses are deducted from this total benefit. The advantage of this is that these can be easily transferred from financial accounting. In the cost of sales method, on the other hand, expenses are summarized, which makes the list more complicated.
The installation is also usually carried out after Gross principle, according to which all expenses and income are listed as individual items. At Net principle may only be used in exceptional cases, combining positions.
