Income Statements

Question 1

Income Statement

Answer 1

£ £
Revenue xxx
Sales Returns (xxx)

Opening Inventory xxx
Purchases xxx
Purchase Returns (xxx)
Carriage in xxx
——
xxx
Closing Inventory (xxx)
——
Cost of sales (xxx)
——
Gross profit xxx
Discount received xxx
——
xxx
Expenses
all expenses xxx
——
(xxx)
——
Profit for the year xxx

Question 2

Income statement for service businesses

Answer 2

Revenue

Sales Returns

Answer + discount received

expenses

add

• answer before

profit