Page:Hints About Investments (1926).pdf/146



the year ending June 30, 1925, Messrs. Bass, whose balance-sheet has already been the subject of our study, published the profit and loss account on page 131, which was attached to the balance-sheet and the directors' report.

On one side we see the receipts of all kinds, less certain expenses, plus the balance brought forward from the previous year; on the other, the payments that have been made, including interim dividend on ordinary shares, and the provisions made for depreciation, etc.; and the two sides tally by the addition to the payments and provisions of the sum that is left over to be carried to the balance-sheet.

A profit and loss account thus shows us the process by which the figures of the balance-sheet are produced, by giving us, among other things, the sums deducted from the book values of property, investments and debts due;