In the United Kingdom the regulation for partnerships, sole traders, charities and chartered institutes allows a degree of flexibility in the presentation of profit and loss accounts. However there is tight regulation over the presentation of limited companies, which is set out in the Companies Act 1989.
Profit and Loss Account for the year ended date - month - year
Example
A typical profit and loss account for a limited company may look similar to the one shown below.Sales............................................................10,217,880
Cost of sales.....................................................5,468,000
_________
Gross profit......................................................4,749,880
Net Operating Expenses (see note 1)...............................2,333,605
__________
Profit on ordinary activities before taxation and interest........2,416,275
Interest payable......................................................5,250
__________
Profit on ordinary activities before taxation.....................2,411,025
Taxation..........................................................1,080,000
__________
Profit for the financial year.....................................1,331,025
Dividends Paid......................................................140,000
Dividends Proposed...................................................75,000
__________
Retained Profit for the financial year............................1,116,025
Note 1
Operating Expenses
Depreciation................1,211,426
Wages and NI..................908,110
Administration expenses.......126,390
Distribution Costs.............87,690
_______
2,333,605