Prepare an income statement, Cost Accounting

Mrs. M. Botham is a sole trader, selling a variety of fashionable clothing materials. Her business year end is 31 December 2011.

You have been given the following trial balance for the year ended 31 December 2011 with all the relevant year-end adjustments already included.

(a) Prepare an income statement the business for the year ended 31 December 2011.   

Mrs Botham trading as Fashionable Clothing Material

Trial balance as at 31 December 2011

 

Dr
£

Cr
£

Accruals

 

1,000

Bank

2,000

 

Capital

 

11,750

Closing inventory

15,250

15,250

Depreciation charge

3,450

 

Discounts allowed

3,300

 

Drawings

17,750

 

Rent and rates

Travelling expenses

Insurance

Telephone

11,250

8,210

2,750

650

 

Heating and lighting

Plant and machinery at cost

1,850

19,500

 

Plant and machinery accumulated depreciation

 

 

8,390

Opening inventory

16,070

 

Prepayments

1,450

 

Purchases

114,580

 

Purchases returns

Purchases ledger control account

 

440

12,330

Advertising

11,810

 

Sales

 

214,740

Sales returns

Sales ledger control account

600

16,750

 

VAT

 

1,720

Wages

18,400

 

 

265,620

265,620

Posted Date: 2/16/2013 3:12:20 AM | Location : United States







Related Discussions:- Prepare an income statement, Assignment Help, Ask Question on Prepare an income statement, Get Answer, Expert's Help, Prepare an income statement Discussions

Write discussion on Prepare an income statement
Your posts are moderated
Related Questions
Assumptions of Break-Even Analysis 1. The break-even chart is fundamentally a static analysis; commonly changes can merely be displayed by drawing a new chart or a series of c

what is the role of cost accounting in business

Material Handling The objective is to ensure about the goods are delivered to the right places at the right instance and in aright manner to ignore delays, unnecessary and con

The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production c

Prepare the Material Cost Budget of products of a Company For a company along with many products, a periodic budget would be developed given as: Assume a firm has 3 products X

Advantages and Disadvantages of Uniform Costing Advantages 1. It enables costs to be compared simply 2. It makes it easier to computerize the accounting system of d

how do you calculate estimating cost for the last of the year based on activity during the first half of the year

1. Wrangle Corporation stock sells at a price of $80 a share and the riskless rate is 7%. Calculate the price of a 9-month call option on Wrangle stock with an exercise price of $7


Zero Based Budgeting It is referred to also like priority based budgeting. It is a cost advantage approach budgeting where it is assumed that the cost allowance is Zero for a