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 |
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.
Quick NetOne, Telecel, Africom, And Econet Airtime Recharge
If anything goes wrong, chat with us using the chat feature at the bottom right of this screen
