Using the below trail balance, prepare income statement for the start-up company ABC as on 31st April XXXX

Question

Using the below trail balance, prepare income statement for the start-up company ABC as on 31st April XXXX

Banking & FinanceFinance ManagementGrowth & Empowerment

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Trail balance of ABC Company as on 31st April XXXX
	Debit ($)	Credit ($)
Banking equipment	10000
Debtors
Bank	5000
Capital		16000
Drawings	600
Loan		1800
Creditors
Services		18000
Salaries	9500
Telephone expenses	700
	25800	25800

Solution

The solution is as follows −

While preparing income statement, we consider only expenses and income.

Income => services => 18000

Expenses => salaries + telephone expenses => 9500 + 700 => 10200

Income statement for the company ABC for period ending on 31st April XXXX
	Debit ($)	Credit ($)
Income		18000
(services)	18000
Expenses		(10200)
Salaries	9500	7800
Telephone expenses	700
Net profit

Mandalika

Published on 28-Sep-2020 14:23:53

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