I'm doing a basic set of accounts for a small club, do i include our assets in the profit and loss a/c?

Profit and Loss - fixed assets are they considered when producing the profit and loss account. i.e. if the club has made a loss in the year of 5k and the fixed assets amount to 4.5k is that considered a loss of 500. and vice versa in respect of a profit?

I'm doing a basic set of accounts for a small club, do i include our assets in the profit and loss a/c?
Normally the only way you use assets in a P%26amp;L is depreciation and possibly amortization- The Assets show up on the balsnce sheet.
Reply:Listen to the guy with 40 years experience he knows what he is talking about..........
Reply:Very simple!Fixed asset are not considered in p%26amp;l acc.What is concidered in p%26amp;l acc. is the depreciation of an asset value.


If the buz made a loos it is non of the buz of fixed asset ,but the buz itself.All that will go to p%26amp;l acc is the depreciation which will also reflect in your balansheet at end of the financial year.For example,if you decide to charge 5k per year for an asset of 60k with a life span of 12 years.It means that, 5k will be charge to p%26amp;l as depreciation each financial year and same amount post to balansheet to reduce the value of the asset.Which means that the value of the asset in the second year will be 55k, which will continue reducing for the period of 12years.


Hope is answerd? if not, lets share your worries.


Regards.
Reply:Fixed assets don't appear in the P %26amp; L. They would appear in the Balance Sheet.





The P %26amp; L is, crudely, what might be called an "income %26amp; outoings" account.