Can someone please explain these accounts in simple terms

[LostForWords]

Hi,

Could someone please explain whether my understanding of this balance sheet from accounts filed with companies house information is correct

Would this effectively refer to the amount of money a company has either sat in the bank or petty cash ?

CURRENT ASSETS
Cash at bank and in hand		228,456		188,671
		228,456		188,671

Is £290,626 the amount of profit made by the company in the financial year ?

CAPITAL AND RESERVES
Called up share capital	9		100		100
Profit and Loss Account			262,467		261,333
SHAREHOLDERS' FUNDS			262,467		261,333

Is it possible to tell on a companies filed accounts what their turnover was ?

Regards,
M

 

[Ian J]

"yes" for cash at Bank but "no" for profit & loss account and "no" for turnover details having to be filed at Companies House

The P&L Account is retained profits and not profit for the year and retained profits are last years retained profits plus this year's profit minus Corporation Tax and Dividends

 

[DontAsk]

Is £290,626 the amount of profit made by the company in the financial year ?

It doesn't appear anywhere in the extract you show.

 

[LostForWords]

It doesn't appear anywhere in the extract you show.

Sorry I mistyped the amount (was looking at other figures at the time). Was meant to say 262,467

 

[LostForWords]

"yes" for cash at Bank but "no" for profit & loss account and "no" for turnover details having to be filed at Companies House

The P&L Account is retained profits and not profit for the year and retained profits are last years retained profits plus this year's profit minus Corporation Tax and Dividends

Thanks for the reply

 

[brucegreig]

You can't get to profit or turnover directly, but you can get a feel for it as follows:

Retained profits in the most recent year were 262,467. Year before that 261,333. So they've made at least 1,134 (difference between those two) profit in the most recent year. If you can also see a dividend payment and a corporation tax payment elsewhere in the accounts, you can add those on t othe 1134 and that should get you the profit for the year.

Turnover: if they show trade debtors somewhere, you could take a guess that that represents 30 days of turnover. If you understand the industry they are in, you'll know whether 30 days payment terms is reasonable or not. So if they have £100k of trade debtors, that's probably 30 days of revenue, so they will be doing something like £1.2m of turnover. Some industries won't offer 30 days, and some companies are better at chasing than others, etc. etc., so you can't rely very much on this, but it at least gives you a rough pointer.