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.

Bank Account 40600  
Capital Account   40000
Creditor - Flash Sales Limited Account   10000
Creditor - Kensington Supplies Limted Account   6000
Debtor - Hampstead Heath Party Hire Account    
Discount Allowed Account 200  
Drawings Account 4200  
Energy Expenses Account 3500  
Furniture Account 18000  
Leasing Expenses Account 3500  
Purchases Account 6000  
Rent Payable Account 20000  
Rent Receivable Account   4000
Sales Account   47000
Wages Account 11000  
  107000 107000  

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