Statement of comprehensive income—Function of expenses

Purchase of merchandise Sale of merchandise

DR: Inventory-Merchandise (B/S) DR: Change in inventory (I/S)

CR: Change in inventory (I/S) CR: Inventory-Merchandise (B/S)

DR: Merchandise inventory (I/S) DR: Debtor (B/S)

CR: Creditor (B/S) CR: Revenue (I/S)

Revenue x
Costs of sale (x)
Gross profit x
Other operating income x
Other operating expenses (x)
Distribution costs (x)
Administrative expenses (x)
Profit from operating activities (x)