When Constructing a trading, profit and loss account. Does fixtures / fittings and General expenses.?
Fixtures & Fittings are capitalised and go into the Balance Sheet as a fixed asset. A deduction will be made for depreciation when drawing up the next balance sheet, usually in twelve months time. This will be charged to the P&L a/c under expenses. General expenses will be charged direct to the P&L a/c. Like depreciation it is a charge against income in arriving at net profit.
