The Pineapple Pub

Preparing Simple Financial Statements

Scene 86 / of 100
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 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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