FORMAT OF PROFIT OR LOSS ACCOUNT
$ $
Sales Revenue (Sales
Revenue)
Less: Sales Returns (Sales Return)
Less: Cost of Sales ...
EXAMPLE: BELOW SHOWS A TRIAL BALANCE
OF A BUSINESS. PREPARE A TRADING
ACCOUNT FOR THE BUSINESS
Trial Balance
As at 31 Oct ...
Utilities Expense 70
Service Income 500
Repair Expense 350
Cash in Hand 100000
Cash at Bank 336278
Inventory 6000
Trade Re...
INSERT SALES REVENUE, SALES RETURN AND
COST OF SALES INTO THE RIGHT COLUMN AND
DEDUCT SALES RETURNS AND COST OF SALES
FROM...
INSERT OTHER INCOME ON THE LEFT SIDE AND
CALCULATE THE TOTAL, PUTTING IT AT THE
RIGHT SIDE. ADD GROSS PROFIT AND OTHER
INC...
INSERT THE OTHER EXPENSE ON THE LEFT SIDE AND
CALCULATE THE TOTAL, PUTTING IT AT THE RIGHT SIDE.
ADD GROSS PROFIT AND OTHE...
Less: Other Expense
Discount Allowed 4000
Rental Expense 750
Salaries Expense 500
Utilities Expense 70
Repair Expense 350 ...
Upper Secondary Principles of Account-Profit or loss account
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Upper Secondary Principles of Account-Profit or loss account

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Upper Secondary Principles of Account-Profit or loss account

  1. 1. FORMAT OF PROFIT OR LOSS ACCOUNT $ $ Sales Revenue (Sales Revenue) Less: Sales Returns (Sales Return) Less: Cost of Sales (Cost of Sales) Gross Profit (Sales Revenue- Sales Returns- Cost of Sales) Add: Other Income (Other Incomes) (Other Incomes) (Sum of Other Incomes) (Gross profit + Other income) Less: Other Expense (Other Expense) (Other Expense) (Sum of Other Expense) Profit for the period (Gross profit + Other income- (Name of the business) Income statement for the year ended (Date) (Trading)
  2. 2. EXAMPLE: BELOW SHOWS A TRIAL BALANCE OF A BUSINESS. PREPARE A TRADING ACCOUNT FOR THE BUSINESS Trial Balance As at 31 Oct 2012 Debit $ Credit $ Sales Revenue 446000 Sales Returns 30 Cost of Sales 2950 Discount Received 8000 Discount Allowed 4000 Rental Income 1500 Rental Expense 750 Commission Income 900 Salaries Expense 500 Interest Income 120
  3. 3. Utilities Expense 70 Service Income 500 Repair Expense 350 Cash in Hand 100000 Cash at Bank 336278 Inventory 6000 Trade Receivables 12092 Bank Loan 3000 Trade Payables 2000 Capital 1000 463020 463020
  4. 4. INSERT SALES REVENUE, SALES RETURN AND COST OF SALES INTO THE RIGHT COLUMN AND DEDUCT SALES RETURNS AND COST OF SALES FROM SALES REVENUE $ $ Sales Revenue 446000 Less: Sales Returns 30 Less: Cost of Sales 2950 Gross Profit 443020 (Name of the business) Income statement for the year ended 31 October 2012 (Trading)
  5. 5. INSERT OTHER INCOME ON THE LEFT SIDE AND CALCULATE THE TOTAL, PUTTING IT AT THE RIGHT SIDE. ADD GROSS PROFIT AND OTHER INCOME AND PUT IT AT THE RIGHT $ $ Sales Revenue 446000 Less: Sales Returns 30 Less: Cost of Sales 2950 Gross Profit 443020 Add: Other Income Discount Received 8000 Rental Income 1500 Commission Income 900 Interest Income 120 Service Income 500 11020 432000 (Name of the business) Income statement for the year ended 31 October 2012 (Trading)
  6. 6. INSERT THE OTHER EXPENSE ON THE LEFT SIDE AND CALCULATE THE TOTAL, PUTTING IT AT THE RIGHT SIDE. ADD GROSS PROFIT AND OTHER INCOME THEN DEDUCT OTHER EXPENSE AND PUT IT AT THE RIGHT $ $ Sales Revenue 446000 Less: Sales Returns 30 Less: Cost of Sales 2950 Gross Profit 443020 Add: Other Income Discount Received 8000 Rental Income 1500 Commission Income 900 Interest Income 120 Service Income 500 11020 432000 (Name of the business) Income statement for the year ended 31 October 2012 (Trading)
  7. 7. Less: Other Expense Discount Allowed 4000 Rental Expense 750 Salaries Expense 500 Utilities Expense 70 Repair Expense 350 5670 Profit for the period 426330

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