Under the heading CAPITAL and RESERVES on the balance sheet, is a figure called 'Profit & Loss account'.

Should this be the net profit figure from the P&L?

My last couple of sets of accounts (prepared by an accountant) have a different number. Last year it was different by £20 and the prior year by ~ £800 from the net profit figure.

l would ask my accountant but l am trying doing them myself this year as the business cannot really afford his charges.

Thanks,

Should not be the same. The P&L on the Balance sheet is capital and reserves of the business at any given time. The P&L account shows nett profit the business makes after deducting all the expenses of the business and providing some reserves for the company. If the company make a big profit this provision of the reserve will be big and small if the profit is less. This year your P&L on the balance sheet should be unchanged as you business cannot even afford to pay accountant fee.

Under the heading CAPITAL & RESERVES on the balance sheet, is there an account called retained earnings, too? If not, then ur P&L account is really a retained earnings account. This account accumulates the total income & losses for the business since its beginning. The CHANGE in the balance from the end of the prior year to the end of the current year should equal the net income or loss for the year. It MAY not be equal if the owner has taken money out via dividends or if other transactions have been run through the account.

Are u using QuickBooks?