IMPORTANT

Question 1

Format for classfied income statement

Answer 1

INCOME
Sales
Discount Allowed
Net Sales
Less cost of sales(first line)
cartage in
Dis received in second line a+total on 3rd line
add other income
gross profit
less other exepsnes
Selling and distrivution
genreral and adminstirative
financial
profit for period

Question 2

Format for balance sheet

Answer 2

Current assets
non current assets
total assets
current liabilties
non current liabbilties
total liabilties
net assets
Equity
owner capital
add profit/loss from income statement
(drawings)

Question 3

where is cartage put and disc received?

Answer 3

Cartage in on left and disc received in middle

Question 4

What is prfot/loss account items?

Answer 4

Profit/loss acount involves all expenses and income accounts

Question 5

4 thing assessed by banks for risk? CCLG

Answer 5

liquidity
collateral
guarantor
credit history

Question 6

2 things assessed by bank for return?

Answer 6

interest rates
futre business dealings

Question 7

if the business is return products to another business. Gst credits get credits

Answer 7

acc pay 110
gst credits 10
hair prducts 100

Question 8

if some1 retunrs busineess to u debit gst payable

Question 9

What is contained in a trial balance

Answer 9

trial balance is just ledgers accounts

Question 10

What is debtor and creditor

Answer 10

Debtor Acc Rec
Creditor Acc Pay

Question 11

Less cost of sales+cartage in

Answer 11

they are expenses so 1st column
Discount received is Add other income and 2nd line because OF DC ADELER

Question 12

Sales returns were in income statement?

Answer 12

sales return will go w sales and dis allowed