BTEC Level 3 90 Credit in Business
Unit 2: Business Resources
P5: interpret the contents of a trading and profit and loss account and balance sheet for a selected
company
Introduction
This assignment focuses on the trading and profit and loss account as well as the balance sheet of
Brunel University. These account will be analysed and interpreted in order to collect valid data on
how the university is doing in the market and how significant areas in the accounts affect the
business in the future.
Aims and Objectives
1. To be able to understand the purpose of accounts in a business.
2. To be able to understand the formulas used in the trading and profit and loss as well as the
balance sheet.
3. To be able to interpret and breakdown different section in the trading and profit and loss
and the balance sheet.
BRUNEL UNIVERSITY
TRADING, PROFIT AND LOSS FOR THE YEAR ENDED 31.03.14
£ £ £
Sales 155,660
(1850)
Net Sales (Turnover) 153,810
Less cost of Goods Sold
Opening Stock 14000
Purchases 19000
(1500)
Net Purchases 17500
31500
Less Closing Stock (14000)
Cost of Goods Sold (17500)
GROSS PROFIT 136,310
Non- Operating Receipts 0
136,310
Less Expenses
Administration
Rent and Business Rates 30,800
Wages and Salaries 40,000
Telephone and Postage 725
Unit 2: Business Resources
P5: interpret the contents of a trading and profit and loss account and balance sheet for a selected
company
Introduction
This assignment focuses on the trading and profit and loss account as well as the balance sheet of
Brunel University. These account will be analysed and interpreted in order to collect valid data on
how the university is doing in the market and how significant areas in the accounts affect the
business in the future.
Aims and Objectives
1. To be able to understand the purpose of accounts in a business.
2. To be able to understand the formulas used in the trading and profit and loss as well as the
balance sheet.
3. To be able to interpret and breakdown different section in the trading and profit and loss
and the balance sheet.
BRUNEL UNIVERSITY
TRADING, PROFIT AND LOSS FOR THE YEAR ENDED 31.03.14
£ £ £
Sales 155,660
(1850)
Net Sales (Turnover) 153,810
Less cost of Goods Sold
Opening Stock 14000
Purchases 19000
(1500)
Net Purchases 17500
31500
Less Closing Stock (14000)
Cost of Goods Sold (17500)
GROSS PROFIT 136,310
Non- Operating Receipts 0
136,310
Less Expenses
Administration
Rent and Business Rates 30,800
Wages and Salaries 40,000
Telephone and Postage 725
