Professional Documents
Culture Documents
1 From the following trial balance of l. Lamb, extracted after one year’s trading, prepare a statement of
profit or loss for the year ending 13 October 2016. A statement of financial position is not required.
Trial balance as at 31 October 2016
Dr Cr
RM RM
Service Revenue 100,250
Salaries 89,700
Motor expenses 1,200
Rent 950
Insurance 150
General expenses 85
Premises 47,800
Motor vehicles 8,600
Account receivable 13,400
Account payable 8,800
Cash at bank 8,200
Cash in hand 300
Drawing 4,200
Capital 65,535
174,585 174,585
Requirements:
1) Identify Assets, Liabilities, Capital, Expenses & Income.
2) Prepare Income Statement (T format).
Solution:
Income Statement
Salaries 89,700 Services Revenue 100,250
Motor expenses 1,200
Rent 950
Insurance 150
General expenses 85
100,250 100,250
2 From the following trial balance of G. foot after his first year’s trading. You are required to draw up a
statement of profit or loss for the year ending 30 June 2016. A statement of financial position is not
required.
Trial balance as at 30 June 2016
Dr Cr
RM RM
Service Revenue 266,000
Rent 53,800
Lighting and heating expenses 700
Salaries and wages 156,000
Insurance 3,000
Building 84,800
Fixtures 2,000
Accounts receivable 31,200
Sunday expenses 300
Account payable 16,000
Cash at bank 15,000
Drawings 28,600
Vans 16,000
Motor running expenses 4,600
Capital 114,000
396,000 396,000
Requirements:
1) Identify Assets, Liabilities, Capital, Expenses & Income.
2) Prepare Income Statement (T format).
Solution:
Income Statement
266,000 266,000
3 From the following trial balance of F. Dover drawn up on conclusion of his first year in business, draw
up a statement of profit or loss for the year ending 31 May 2017. A statement of financial position is not
required.
Trial balance as at 31 May 2017
Dr Cr
RM RM
General expenses 610
Business rates 4,800
Motor expenses 1,820
Salaries 221,200
Insurance 2,480
Service Revenue 471,624
Car 8,600
Accounts payable 22,400
Accounts receivable 42,160
Premises 206,000
Cash at bank 5,430
Cash in hand 650
Capital 46,526
Drawings 540,550 540,550
Requirements:
1) Identify Assets, Liabilities, Capital, Expenses & Income.
2) Prepare Income Statement (T format).
Solution:
Income Statement
471,624 471,624
4 Extract a statement of profit or loss for the year ending 30 June 2016 for G. Graham. The trial balance
as at 30 June 2016 after his first year of trading was as following.
Dr Cr
RM RM
Equipment rental 940
Insurance 1,804
Lighting and heating expenses 1,990
Motor expenses 2,350
Salaries and wages 48,580
Service Revenue 382,420
Other Expenses 245,950
Sundry expenses 624
Lorry 19,400
Accounts payable 23,408
Accounts receivable 44,516
Fixtures 4,600
Shop 1174,000
Cash at bank 11,346
Drawings 44,000
Capital 194,272
600,100 600,100
Requirements:
1) Identify Assets, Liabilities, Capital, Expenses & Income.
2) Prepare Income Statement (T format).
Solution:
Income Statement