Patricia Green's Organic Fruit and Vegetable Stall

Preparing Simple Financial Statements

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The Income Statement shows the income generated and expenditure incurred and establishes if a profit or loss was made.

Preparing the Income Statement - Establishing Income from Sales

The first figure required for the Income Statement is Income from Sales. Remember: sales should be net sales therefore any sales returns must be deducted from sales. Select the appropriate items to include in establishing net sales


Account DEBIT CREDIT
Bank Account 2050  
Capital Account   2000
Creditor - Retail Displays Account   300
Equipment Account 300  
Furniture Account 200  
Insurance Account 180  
Purchases Account 600  
Rent Account 150  
Sales Account   1180
  3480 3480


   



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