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
Daisy Ltd has a net profit after tax of $3 400 000 for the year ending 30 June 2012.  For the entire financial year Daisy Ltd had two million $1.00 cumulative preference shares on

Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made.   Assuming no other cost savi

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

What are the strengths and weaknesses of the various costing methods and which would you recommend for a manufacturing enterpris? 2000word assay plus appendix

Example B & B Mechanical Repairs is a small, family owned partnership that specialises in the servicing and repair of motor vehicles. The business employs three qualified mecha

what is the procedure of purchase of materials in large organisation?

Determine Inventory Costs Mary Cosmetics sells specialty lipstick for a retail price of $12.25 each. Mary purchases each tube for $5.00 and pays the following additional amounts: $

Direct Material Price Variances The two direct material price variances can be summarized given as: From our basic data first before the beginning of the discussion on

need help with master budget