# Revenue and costs

Profit and loss account
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Slide 1: Tekstslide
EconomieMiddelbare schoolvwoLeerjaar 3

In deze les zitten 13 slides, met tekstslides.

Lesduur is: 45 min

## Onderdelen in deze les

Profit and loss account

#### Slide 1 -Tekstslide

Profit and loss account
The selling costs are highly dependent on the turnover

General costs are not or a lot less dependent on the turnover (they are partly fixed costs) and so cannot be calculated based on the expected turnover

#### Slide 2 -Tekstslide

Profit and loss account
Costs
Revenue
Purchase value of turnover          €200,000
Turnover         €260,000
General costs    €10,000
Selling costs     €25,000
Depreciation      €5,000
Profit                 €20,000
Total              €260,000
Total               €260,000

#### Slide 3 -Tekstslide

Profit and loss budget
Turnover
- Costs of sales
-------------------
= Gross profit
- Operating costs
-----------------------
= Net profit

Balance sheet

#### Slide 5 -Tekstslide

Assets - debts = equity
900 - 400 = 500

Assets
Debts
Inventory
€ 500
Equity
€ 500
Goods
€ 300
Bankloan
€ 300
Cash
€ 100
Creditors
€ 100
Total
€ 900
Total
€ 900

#### Slide 6 -Tekstslide

Expenditure and costs
Expenditure = uitgave             Cost = kosten
You buy a car of € 15,000. You pay cash. This is an expenditure.
It's not a cost.
Assets
Debts
Car
+ € 15,000
Cash
- € 15,000

#### Slide 7 -Tekstslide

Effect of a purchase of a fixed asset
The total amount of assets doesn't change. The equity remains the same
Assets
Debts
Car
+ € 15,000
Cash
- € 15,000

#### Slide 8 -Tekstslide

Example of car related costs
You have to pay insurance premium € 25 per month by bank.
This is a cost. You spend € 25 and do not get a asset in return.
Total amout of assets decreases. Equity decreases as well.
This is also an expenditure
Assets
Debts

#### Slide 9 -Tekstslide

Example of car related costs
You have to pay insurance premium € 25 per month by bank.
This is a cost. You spend € 25 and do not get a asset in return.
Total amout of assets decreases. Equity decreases as well.
This is also an expenditure
Assets
Debts
Bank
- € 25
Equity
- € 25

#### Slide 10 -Tekstslide

Another example of expenditure but not a cost: purchase of goods
Jimmie purchases goods (butter, lettuce) for an amount of
€ 50. He doesn't pay in cash but receives a bill

Equity is not affected. Total assets increase but debts also increase.
Assets
Debts

#### Slide 11 -Tekstslide

Another example of expenditure but not a cost: purchase of goods
Jimmie purchases goods (butter, lettuce) for an amount of
€ 50. He doesn't pay in cash but receives a bill

Equity is not affected. Total assets increase but debts also increase.
Assets
Debts
Goods
+ € 50
Creditors
+ € 50

#### Slide 12 -Tekstslide

What is missing here?
Costs
Revenue
Purchase value of turnover          €200,000
Turnover         €240,000
General costs    €10,000
Selling costs     €25,000
Depreciation      €5,000
Total              €240,000
Total               €240,000