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



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

Updated on: 2020-09-28T10:54:34+05:30

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