Preparing Financial Statements

The Trial Balance contains the information needed for both the Income Statement and the Balance Sheet. Identify which items (expenditure and income) should appear in the Income Statement and which items (assets and liabilities) should appear in the Balance Sheet.

Advertising Account 400  
Bank Account 9560  
Bank Interest Account 50  
Capital Account   5000
Cash Account 270  
Creditor Shops R Us Account   4500
Creditor Style Accessories Account   1280
Debtor Greenland Golf Club Account    
Drawings Account 600  
Equipment Account 2000  
Fixtures & Fittings Account 4500  
Insurance Account 300  
Loan Account   10000
Purchases Account 5500  
Purchases Returns Account   120
Rent Payable Account 1000  
Sales Account   3310
Sales Returns Account 30  
  24210 24210  

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