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

Banking & FinanceFinance ManagementGrowth & Empowerment

Trail balance of ABC Company as on 31st April XXXX

Debit ($)Credit ($)
Banking equipment10000
Debtors

Bank5000
Capital
16000
Drawings600
Loan
1800
Creditors

Services
18000
Salaries9500
Telephone expenses700

2580025800

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)
Salaries95007800
Telephone expenses700
Net profit

raja
Published on 28-Sep-2020 10:53:53
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