Prepare an income statement, Cost Accounting

Assignment Help:

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


Related Discussions:- Prepare an income statement

Calculate the gross profit margin, Assets                                  ...

Assets                                               2011                                                                        2010 Non Current Assets

Generally accepted accounting principles, Generally Accepted Accounting Pri...

Generally Accepted Accounting Principles (GAAP) -Rules, conventions and procedures essential to define accepted accounting practice at a specific time. The highest level of such pr

Assignment Choice #2: Accounting for Byproducts (Quantitativ, Pyramid Print...

Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping-box ins

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

What is the original cost of the auto?, I'm having a hard time with this, c...

I'm having a hard time with this, can you please help? I know the dates are imparative also in finding the solution. Stevens purchased an auto on Jan 1, 2001. On December 31, 2003

Debt-equity ratio, Allie forms Broadbill Corporation by transferring land (...

Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporat

Calculate the breakeven fee income, A company provides several different se...

A company provides several different services to its customers from a single office. Fixed costs of the office, including staff costs, are absorbed into the company's service costs

What is the predetermined overhead rate, Morrow Company applies overhead ba...

Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h

What are the variable costs, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those

Calculate the group profit and loss, Using the chosen company from Bursa Ma...

Using the chosen company from Bursa Malaysia, prepare a consolidated accounts assuming that the chosen company acquire Sure Cargo Behard at 80% of its ordinary shares. Given bel

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd