In the company I work for the previous bookkeeper used to do a breif P and L every month with a summary showing the total for the whole year.
Theres a box underneath saying estimated corporation tax and the formula is net profit x 0.21.
I've been asked to maintain this but the dividends were added into the overheads so I've taken all these out (is this correct?) and put the estimated corporation tax underneath net profit, the dividends underneath the tax and then took the tax and dividends away from the net profit to give me the estimated net profit.
Does this look about right? I've only ever done P and L in college and it was only up to the net profit I didn't know it carried on!
Also how would I figure out what the percentage of gross and net profit was?
Sounds like this is a dividend exercise. The usual process is to get to a net profit figure (which completely excludes CT & dividends), calculate CT @ 21% (assuming no significant amendments for dep'n or cap all), which gives retained earnins which are available to declare dividends from.
Gross profit margin is sales divided by gross margin. Say:
Thanks Nick! That helped alot thank you. I've faxed it to the accountant and they said its all fine. Its been quite interesting doing this as I'm actually putting to practice what I've done up to now in college.
