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Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Law
Satisfied Customers: 5482
Experience:  Dual qualified Solicitor and Attorney
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I have include the profit and loss section of my uni

Customer Question

I have include the profit and loss section of my uni assignment. Please could you tell me if I should have added closing inventory and I have correctly said that it is net profit? The revenue in the chart below is made up of sales and closing inventory. Opening inventory was 3,250 books with a wholesale value of 0.113p per book. The business sold 252 books in its first six months of trading leaving a closing inventory of 2,998 books multiplied by 0.113p which equals £338.77.Profit and Loss Account for Burrows’ Books. Period ending 31/05/2020 (6 Months)£
£
Revenue£1,220.77
Less Expenses:Vehicle expenses (insurance and petrol)
£675.98Advertising
£178£853.98
Net Profit£366.79
JA: Where are you? It matters because laws vary by location.
Customer: South Wales, UK
JA: What steps have you taken so far?
Customer: I've done my balance statement, then the P&L I just sent you and after that I have done a statement of financial position
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No, I'm just unsure whether I was supposed to add the closing inventory in a P&L account and if I do is it then still classed as net profit. Thank you.
Submitted: 6 months ago.
Category: Law
Expert:  Jeremy Aldermartin replied 6 months ago.

Hi thank you for your message, in a simple profit and loss statement you would not include opening and closing stock. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.