Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Trading and Profit and Loss Account/Income Statement Example
From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6. A balance sheet is not required.
DR | CR | |
---|---|---|
$ | $ | |
Sales | 190576 | |
Purchases | 119832 | |
Salaries | 56527 | |
Motor expenses | 2416 | |
Rent | 1894 | |
Insurance | 372 | |
General expenses | 85 | |
Premises | 95420 | |
Motor vehicles | 16594 | |
Debtors | 26740 | |
Creditors | 16524 | |
Cash at bank | 16519 | |
Cash in hand | 342 | |
Drawings | 8425 | |
Capital | 138066 | |
345166 | 345166 |
- Stock at 31 December 20X6 was $12,408
Solution
S Madondo
Trading and Profit and Loss Account for the year ended 31 December 2016
$ | $ | |
---|---|---|
Sales | 190576 | |
Less Cost of Goods Sold: | ||
Purchases | 119832 | |
Less closing stock | (12,408) | |
(107,424) |
||
Gross Profit | 83152 | |
Less Expenses: | ||
Motor expenses | 2416 | |
Rent | 1894 | |
Insurance | 372 | |
General expenses | 85 | |
Salaries | 56527 | |
(61,294) |
||
Net Profit | 21858 |
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