retained profit / loss

[bradmore]

Hi trhe

On the openaccounts . I have put the value of the assets (original costs minus cumulatve depreciation) into cell E13.

This makes the accuracy check out by a similar amount (cell E37)

Should the amount in E13 be put into either £34 or E35 - because when I do that the whole thing balances - but I do not really understand the terms 'Retained profit and loss' or indeed 'Capital reserves'

Thanks

Peter

[antonycc]

Hello,

E13 is the current value of your fixed assets.
E34 is the cumulative profit or loss for all previous years.

It's possible these two are similar but they aren't related. The "Retained Profit and Loss" from the previous years Balance Sheet should be copied into the following years opening figure, E34 in DIY Accounting.

Capital Reserves: You can move funds from the P&L into a capital reserve to use for significant asset purchases you might want to budget for separately. The idea is that it has been set a aside and wont get dripped into automatically if you make a loss.

Thanks,

Antony.

[bradmore]

Thanks - A further question if I may

I have just paid my Corporation Tax and entered the amount paid in the current account file - do I also need to put it in the purchases file. The reason I ask is that it does not appear in the monthly P&L spreadsheet at present so I thought perhaps I needed to enter it somewhere else as well.

Thanks

Peter

[antonycc]

Hello,

The Corporation Tax payment would just go in the current account sheet for the current month (i.e. now) in this years set of company accounts. Entering the payment will decrement the Corporation Tax liability which you can see on the Balance Sheet.

You would normally start a new set of accounts with a Corporation Tax liability from the previous year, then pay off that liability during the year. The P&L will show the Corporation Tax incurred in the current period so paying off last year's doesn't effect it.

Thanks,

Antony.