Income statement - IGCSE – Ch 8
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Income statement - IGCSE – Ch 8
1 Mary has a business selling washing machines. He buys the goods from the
manufacturers and sells them to stores and other suppliers.
He keeps full accounting records and his trial balance at 30 June 2005 is shown below.
Mary
Trial balance at 30 June 2020
Dr. Cr.
$ $
Advertising 400
Bank 3 200
Carriage inwards 700
Trade payable 8 600
Trade receivable 14 800
Provision for depreciation of fixed assets 3 150
Drawings 24 000
Fixtures & Fittings 5 600
General expenses 390
Insurance 420
Lighting and heating 600
Motor car 12 000
Motor expenses 1210
Office expenses 280
Rent 720
Postage and stationery 180
Purchases 75 600
Sales 102000
Capital 40000
inventory at 1 July 2019 8 400
Wages and salaries 5 250 _______
153 750 153,750
Inventory at 30 June 2020 was valued at $7 100.
REQURED
Prepare Smith’s Income statement for the year ended 30 June 2020
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Income statement - IGCSE – Ch 8
Mary
Income statement for the year ended 30 June 2020
$ $ $
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Income statement - IGCSE – Ch 8
2 Saleem is a sole trader and his trial balance at 31 March 2018 was as follows:
Saleem
Trial Balance at 31 March 2018
$ $
Bank 4 050
Capital 36 000
Cash 250
Carriage outwards 720
Trade payable 2 400
Trade receivable 4 000
Drawings 24 000
Electricity 1 800
Motor car 9 600
Motor expenses 1 380
Provision for depreciation 4 000
Purchases 28 800
Rent 4 800
Sales 47 500
inventory at 1 April 2017 1 500
Wages 9 000
89 900 89 900
Inventory at 31 March 2008 was $1800.
REQURED
A) Prepare Saleem’s trading and profit and loss account for the year ended 31 March 2018.
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Income statement - IGCSE – Ch 8
Saleem Income statement for year ended 31 March 2008
$ $ $
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Income statement - IGCSE – Ch 8
b) Write up Solomon‟s capital account for the year ended 31 March 2008.
Solomon
Capital account
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Income statement - IGCSE – Ch 8
3 Morag MacDonald provides a range of business services for small retail organizations. Her
financial year ends on 31 December.
She provided the following information for the year ended 31 December 2008.
$
Fees from clients 79 050
Property tax paid 1 800
Repairs and maintenance 2 930
Rent received from tenant 2 600
Wages 47 000
Stationery and office supplies 1 765
Insurance 1 680
REQUIRED
(a) Prepare the Income statement of Morag MacDonald for the year ended 31 December 2018.
Morag MacDonald
Income statement for the year ended 31 December 2018
$ $ $
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Income statement - IGCSE – Ch 8
4 The following trial balance was extracted from the books of Robbie McDonald at 30
September 2010.
Dr Cr
$ $
Capital 85000
Drawings 5100
Premises at cost 58000
Motor vehicle at cost 6000
Equipment at valuation 3000
Provision for depreciation of motor vehicle 1200
Purchases return 372
Trade receivables 17600
Discount received 160
Trade payables 16250
Bank overdraft 7128
Inventory 1 October 2009 19500
Revenue 216000
Purchases 176000
Wages 28200
Property tax and insurance 8300
Administration expenses 4410
326110 326110
Additional information
1 Closing inventory for the year ended 30 September 2010 was 7000
2 During the year ended 30 September 2010 Robbie took goods costing $1900 for his
own use. No entries have been made in the accounting records.
REQUIRED
Prepare the income statement of Robbie McDonald for the year ended 30 September 2010.
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Income statement - IGCSE – Ch 8
Robbie McDonald
Income Statement for the year ended 30 September 2010
$ $ $
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Income statement - IGCSE – Ch 8
5 The following trial balance was extracted from the books of Syed at the end of his first year of
trading on 31 January 2015.
$ $
Capital 90 000
Premises at cost 70 000
Equipment at cost 9 300
Revenue 77 100
Purchases 62 030
Wages 10 140
Insurance 2 400
Advertising 1 120
Carriage inward 90
Rates 2 160
General expenses 151
Discount received 43
Trade receivables 6 500
Trade payables 5 950
Cash drawings 5 600
Sales return 3 602
173 093 173 093
Additional information
1) At 31 January 2015 inventory was valued at $4100.
2) During the year Syed took goods costing $580 for personal use. No entries have been made
in the accounting records.
REQUIRED
(a) Prepare the income statement for the year ended 31 January 2015.
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Income statement - IGCSE – Ch 8
Sayed
Income Statement for the year ended 31 January 2015
$ $ $
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Income statement - IGCSE – Ch 8
6 The following trial balance was extracted from the books of Nada at 31 December 2019.
$ $
Machinery 25000
Office furniture 6000
Inventory at 1 Jan. 2019 11000
Trade receivable 4740
Trade payable 1976
Bank 3327
Loan 5000
Revenue 72800
Purchases 28540
Sales return 1600
Purchases return 2144
Wages 3100
Rent 4000
Heating and lighting 5120
Advertising 2400
Other operating expenses 2010
Loan interest 250
Drawings 4833
Capital 20000
101920 101920
Additional information
At 31 December 2019 inventory was valued at $9000.
REQUIRED
(a) Prepare the income statement for the year ended 31 January 2015.
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Income statement - IGCSE – Ch 8
Nada’s Income Statement for the year ended 31 December 2019
$ $ $
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