Prepare Income Statement for Sunny Ltd 2022
"Learn how to prepare an income statement for Sunny Ltd for the year ended 31/12/2022, including trading, profit and loss, and appropriation accounts. Details on sales, expenses, profits, and reserves are covered."
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Presentation Transcript
Chapter 28: Income Statements 2: The Profit and Loss Account Slide templates are mock-ups final versions will be high-res and reference correct chapter
Example 4: Complete income statement From the following information, prepare an income statement (trading, profit and loss and appropriation account) for Sunny Ltd for the year ended 31/12/2022. Cash sales 420,000 (T) Light and heat 3,250 (P+L Exp) Wages 65,000 (P+L Exp) Cash purchases 225,000 (T) Carriage outwards 4,000 (P+L Exp) Opening stock 23,000 (T) Telephone 5,150 (P+L Exp) Customs duty 2,000 (T) Depreciation on vehicles 10,000 (P+L Exp) Closing stock 13,750 (T) Opening reserves (1/1/2022) 50,000 (App) Carriage inwards 6,000 (T) Rent 12,800 (P+L Exp) Dividends paid 6,000 (App)
Income statement of Sunny Ltd for year ended 31/12/2022. The trading account Sales 420,000 Less cost of sales: 23,000 Opening stock (01/01/2022) 225,000 Purchases 2,000 Customs duty 6,000 Carriage inwards 256,000 Cost of goods available for sale 13,750 Closing stock (31/12/2022) Cost of goods sold 242,250 Gross profit 177,750
Income statement of Sunny Ltd for year ended 31/12/2022. The profit and loss account Less expenses Wages 65,000 12,800 Rent 3,250 Light and heat 5,150 Telephone 4,000 Carriage outwards 100,200 10,000 Depreciation on vehicles Net profit 77,550
Income statement of Sunny Ltd for year ended 31/12/2022. The profit and loss appropriation account Net profit 77,550 6,000 Less dividends 71,550 50,000 Add opening reserves (1/1/2022) 121,550 Reserves (retained profit)
