ChatterBank3 mins ago
Trading Surplus
3 Answers
What does the expression "Trading Surplus" mean when found in a simple set of accounts that a club/volunteer organisation might have.
For example:
Opening Stock: £250.
Purchases: £75.
Trading Surplus: £90
For example:
Opening Stock: £250.
Purchases: £75.
Trading Surplus: £90
Answers
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What perhaps I should have made clear is that all 3 amounts in my question appear under Expenses and are totaled giving an amount of £415.
Whilst I accept that clubs show profit/losses in the way you describe, were would I look to find what generated the Surplus of £90 i.e is a profit or a loss? I think of a surplus as being like a profit but if that is correct why show it in expense without making a deduction from costs?
Thanks again.
What perhaps I should have made clear is that all 3 amounts in my question appear under Expenses and are totaled giving an amount of £415.
Whilst I accept that clubs show profit/losses in the way you describe, were would I look to find what generated the Surplus of £90 i.e is a profit or a loss? I think of a surplus as being like a profit but if that is correct why show it in expense without making a deduction from costs?
Thanks again.
the suplus/deficit is is the final result of the balance sheet, essentially all income - all expenses. In the example you give we have £250 of stock and we bought a further £75 of stock so we have £325 in. There is a trading of surplus of £90, not sure whether you mean that a final figure of £90 was realised after selling some stock, do you have any other figures? ie closing stock? sales? cost of purchses? Club accounts are simple but still would include all other income and costs so the £90 could refer to the final surplus when all is taken into account. If you could be more specific then I could help more.
Or are you just talking about a stock takers report?
Or are you just talking about a stock takers report?
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