Title:

Profit and Loss Statement

Products: Paramo Pro, WRC
Last Updated: 10 April 2015

Preview Actions  

Transfer the trading accounts to the profit and loss account periodically. This is a one step function. Before closing:

Profit and Loss Statement

Accounts Profit and Loss Statement

The Profit and Loss Account  

Select Close Accounts to transfer the balances of all the income and expenditure accounts displayed here to the profit and loss account. This is usually an end of year function but can be done periodically.  After transfer, futher adjustments can be made from the  General Journal .

If the Profit and Loss account has a Credit balance, the accounts show the business in profit. A debit means the business has run at a loss .After all end of year adjustments have been made, the balance of the profit and loss account must be transferred to the Capital or similar equity account, even if the business has run at a loss (the account balance must be zeroed). 

Balance Sheet

Select the Balance Sheet tab to view the balance sheet to the current date. The Balance Sheet should be taken after preparing the trial balance,transferring balances to the profit and loss account, and the profit and loss and adjustments. Click on PDF to create a Balance Sheet in the standard format.