Gross Profit or Loss

Turnover
In the Profit and Loss Account, turnover is the income you generate through your sales.  (Investment income, which will be the subject of a future blog, is dealt with elsewhere)

Cost of Sales
This is basically all the direct expenditure incurred in generating your sales.  Therefore, the cost of stock and raw materials will be included here.

Gross Profit or Loss
Turnover less Cost of Sales gives the Gross Profit or Loss

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