I prepared the profit and Loss account on Sage 50, there is an item "sales Promotion" whose figure is surprisingly high. I checked the "sales promotion " nominal account, the figure shows on this account is very small. I'm confused!! is it possible that some other nominal accounts are included into the "Sales promotion " on P&L?
If you are looking at the Sage P & L then it does group nominals together, you will probably have advertising in that figure and anything else in the 62XX range, look a bit further down and be prepared to be freaked out by what you have for 'General expenses'!
I found out what's happening. Because we have added many accounts under code 62..., therefore, all of these 62.. accounts were added up to the "promotion Expenses". I managed to regroup these 62...s for our use.
I noticed many people mention to prepare the P&L from TB, but I thing it is a method that only useful for the exams in school. As we have accounting soft ware, the software will do this for me. Is there any advantage if I prepare the P&L even BS from TB?
Hi Depending on which software you are using you should be able to split the codes out, via your Chart of Accounts, then tehy will report as you wish to see them on your P&L, so you shouldnt need to do it from your TB. (Certainly can in Sage, Im sure you will be able to in most software)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
