Bling

Preparing Simple Financial Statements

Scene 122 / of 136
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
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


   



« back to previous step