income statement t he statement prepared to know the gross income and the net income at the end of a...
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INCOME STATEMENT
The statement prepared to know the gross income and the net income at the end of a particular period is known as income statement.
BALANCE SHEET
The balance sheet is the list of assets and equities prepared at a specific time.It is also known as the statement of financial condition of a firm. It is normally prepared at close of each year.
From the following trial balance of Aftab Trading corporation, prepare income statement and balance sheet for the year ended December 31,2008
LIST OF ACCOUNTS Dr Cr
Cash 1070
Accounts receivable 2230
Machinery 12980
Accumulated Depreciation of Machinery 550
Accounts Payable 1500
Notes Payable 70
Capital 8100
Revenue from Sales 13110
Traveling Expenses 5900
Trade expenses 1150
Interest 200
Commission 200
TOTAL 23530 23530
AFTAB TRADING CORPORATIONINCOME STATEMENT
FOR THE YEAR ENDED DEC.31,2008
REVENUE FROM SALES Afs.
13110Less: Operative expenses Travelling expenses 5900
Commission paid 200
Trade expenses 1150
Operative profit
Add: Other Income
Interest received
Net income
7250
5860
200
6060
AFTAB TRADING CORPORATIONBALANCE SHEET
AS ON DECEMBER 31,2008
ASSETS AMOUNT LIABILITIES AND CAPITAL
AMOUNT
CURRENT ASSETS
CashAccounts Receivable
Total
Fixed Assets Machinery 12980
Less: Acc: Dep. 550
Current Liabilities
Accounts payable
Notes payable
Total
Owner's Equities Capital 8100
Add: Net Income 6060
1500
70
1570
14160
1070
2230
3300
12430
Total assets 15730 Total Equities 15730
Following is the trial balance of Raja Mohammad yunas khan traders for the year ended june 30.1990
Rs. Rs.
CashMachineryAccounts receivableSalariesTraveling expensesFreight & OctoriMiscellaneous expensesCommissionInterest receivedAccounts payableAccumulated depreciation – machineryNotes payableCapital (O.E)Revenue from salesPurchases
970.002980.002230.003000.002900.001000.00150.00200.00
10000.00
200.001500.00550.0070.003100.0018010.00
Total 23430.00 23430.00
Raja Muhammad Younas Khan TradersIncome Statement
For the year ended june 30,1990
Afs AfsRevenue from sales
Less: Operative Expenses
Salaries
Travelling expenses
Freight&Octroi
Misc.Expense
Commission
Purchases
30002900
1000
150
200
10000
18010
17250
Operative Profit 760
200
960
Add: Other Income
Interest
Net Income
Raja Muhammad Younas KhanIncome Statement
As on June 30,1990
Assets Amount Liabilities+Owner ,s Equity
Amount
Current Asset
CashAccounts Receivable
Total
Fixed Assets Machinery 2980
_ Acc: Depreciation 550
970
2230
3200
2430
Current LiabilitiesAccounts payable
Notes Payable
Total
Owner's EquitiesCapital 3100
+Net Income 960
1500
70
1570
4060
Total 5630 Total 5630
Following is the trial balance of Saqlain Transport Co. for the year ended on 31st December,2005
List of accounts Dr CrCash 9700
Accounts Receivable 22300
Machinery 124300
Accounts Payable 15000
Notes Payable 700
Capital 81000
Revenue from services 130100
Fuel expenses 59000
General expenses 11500Commission Received 2000
Interest paid 2000
Total 228800 228800
Saqlain Transport CompanyIncome Statement
For the year ended on 31st December,2005
Afs Afs
Revenue from services
Less: Operative Expenses
Fuel expenses
General expenses
59000
11500
130100
70500
Operative Income 59600
Add: Other income
Commission received2000
Less: Other expenses
Interest paid
61600
2000
Net income 59600
Saqlain T ransport CompanyBalance Sheet
As on 31st December,2005
Assets Amount Liabilities+Owner,s Equity
Amount
Current Assets Cash
Accounts Receivable
Total
Fixed Assets
Machinery
9700
22300
32000
124300
Short term liabilities Accounts payable
Notes payable
Total
Owner's Equities Capital 81000
+Net Income 59600
15000
700
15700
140600
Total 156300 Total 156300