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From the trial balance below:
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Identify each item using a letter:
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"g" if the item is needed for gross profit
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"e" if the item is an expense
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"ca" if the item is an current asset
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"fa" if the item is a fixed asset
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"cl" if the item is a current liability
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"fl" if the item is a fixed liability
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"c" if the item affects capital
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"r" if the item is a revenue
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Then complete the income statement.
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Q1)
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Identify
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Trial Balance
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DR
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CR
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Bank
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£7,600
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Carriage Out
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£850
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Premises
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£250,000
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Accounts Payable
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£7,500
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Sales
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£54,000
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Carriage In
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£1,200
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Capital
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£235,550
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Cash
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£2,300
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Commissions Received
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£5,000
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Loan
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£15,000
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Rent Received
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£12,000
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Opening Inventory
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£3,700
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Commissions Payable
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£2,500
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Drawings
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£500
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Machinery
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£20,000
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General Expenses
|
£800
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Electricity
|
£1,200
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Purchases
|
£24,000
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Salaries
|
£4,000
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Accounts Receivable
|
£8,500
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Returns
|
£1,300
|
£2,400
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Vehicle Expenses
|
£3,000
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Closing Inventory
|
5400
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Income Statement
|
£
|
£
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Less Cost of Goods Sold
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Gross Profit
|
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