Profit/Loss account on Abbreviated accounts

[Tevh]

Hello, I have a question regarding the profit/loss account box on the Companies House abbreviated annual accounts form. Is this how I calculate the value:

Turnover minus expenses minus assets = profit or loss

If this is correct do I use the total asset cost without any depreciation? For example if the actual cost of assets cost me £4,000 for the year would I use this amount, or would I use the amount with depreciation deducted?

Thank you.

[ASB]

I don't see why you think assets come into it. Depreciation of assets is a chargeable expense though.

e.g T/O 100,000, buy 50k of plant. spend 20k on materials. Profit = 80k. (The plant now being financed by shareholders funds). Say first year depreciation happens to be 20k then this is chargeable, thus profit is now 60k and the plant has a depreciated book value of 30k. Also remember there can de differences between how you account for the value of assets in the books (fair market value is generally OK) and the depreciation that is actually chargeable to CT.

If you are unsure of the meaning of the question or how to complete it on the return to companies house (and remember HMRC get copies with the returns you have to send them) then I wonder if you are really the right person for the job.

Incorrect filings are probably the biggest cause of investigations.

[Tevh]

Thanks ASB, I can see where I went wrong regarding the assets.

I have had help from an accountant friend with the abbreviated accounts, but I would like to know how things work so I can understand better the accounts side of the business.

My only problem now is that I have entered everything correct on the form, but the Shareholders Funds box is displaying an error. I can't understand why...the profit/loss is correct and so is the share info (which is just one share at a value of £1).....

[Tevh]

Sorry, please ignore my last post. I've now sorted things out.