Topic income statement tutorial 3

1. TOPIC : INCOME STATEMENT (without adjustments)
TUTORIAL 3
1. Determine whether the following items are Revenue (R), Cost of goods sold (COGS), Other
Income (I) or Expenses (E). Tick the correct answer.
PARTICULARS R COGS I E
Sales
Purchases
Rent received
Rent paid
Carriage inwards
Stock
Wages and salaries
Insurance
Interest on loan
Interest on investment
Interest on fixed deposits
Carriage outwards
Return inwards
Return outwards
Import duties
Depreciation
Bad debts
utilities
Water and electricity
stationeries
postages
Distribution costs
Discount allowed
Discount received
Repairs and maintenance
Petrol expenses
General expenses
Miscellaneous expenses
Advertising
Commission received
Telephone expenses
Travelling expenses
Salesman commission
2. Net Profit = Gross Profit + _______________________ - ____________________.
3.
Stock 1/1/2011 RM9,400
Stock 31/12/2011 5,670
Purchases 10,860
Freight in 400
Freight out 500
Sales 26,750
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2. Return inwards 110
Return outwards 88
Gross profit that was earned during the year ended 31 December 2011 was ____________.
4. Calculate the cost of goods sold, given the following information:
Sales RM27,940
Carriage inwards 300
Stock 1/1/2010 9,600
Stock 31/12/2010 5,800
Purchases 16,000
Return outwards 250
5. Based on the Trial Balance you have prepared for question 6 from Tutorial 2, prepare the
Income Statement for the year ended 31 January 2011 for Darius Enterprise.
6. Using your answers for question 7 from Tutorial 2, prepare the Income Statement for Lai Trading
for the year ended 28 February 2011.
7. Using your answers for question 8 from Tutorial 2, prepare the Income Statement for Huang
Electrical store for the year ended 31 January 2011.
8. The following trial balance was extracted from the book of Tong Sam Fah as at 31 August 2011:
Particulars
Debit
RM
Credit
RM
Purchases 38,220
Debtors 12,720
Sales 63,120
Capital 59,175
Creditors 7,265
Drawings 3,800
Office equipment 24,500
Delivery van 18,300
Fixtures and fittings 7,200
Advertising 8,500
Cash 3,260
Maintenance and petrol 2,320
Salaries and wages 8,010
Bad debts 200
Carriage inwards 420
Carriage outwards 500
Electricity, water and telephone 1,220
Duties on purchase 1,830
Return inwards 220
Return outwards 225
Stock : 1 September 2010 6,830
Accumulated depreciation, 1 September 2010:
Delivery van
Fixtures and fittings
2,745
2,160
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3. Office equipment 4,900
Provision for doubtful debts 600
Commission received 1,480
12% Loan from Bank Rakyat 11,000
Rent 2,400
Insurance 2,000
Bank 10,540
Discount allowed 430
Discount received 350
154,420 154,420
Stock as at 31 August 2011 was valued at RM5,200.
Required: Prepare the Income Statement for the year ended 31 August 2011 using the vertical
format.
9. The following is a list of balances extracted from the book of Rogers Trading as at 31 December
2010.
Particulars Debit
(RM)
Credit
(RM)
Purchase and Sales 71,500 111,000
Return inwards and outwards 3,300 4,950
Freight inwards 385
Freight outwards 220
Advertising 935
Interest on overdraft 550
Salesman’s commission 990
General expenses 1,375
Interest from Investment 440
Discounts 100 550
Land and Premises 88,000
Machineries 44,000
Office equipment 3,300
Furniture 1,650
Motor vehicles 18,150
Investment 3,300
Inventory as at 1 January 2010 13,200
Debtors and Creditors 37,290 49,500
Bank 3,740
Cash 275
Mortgage 66,000
Drawings 1,100
Capital 61,820
Wages 500
Import duties (on purchase) 400
294,260 294,260
Inventory as at 31 December 2010 is worth RM40,000.
Required: Prepare the Income Statement for the year ended 31 December 2010.
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4. 10. The following is the trial balance of Hamtaro Sdn Bhd as at 31 December 2010.
Hamtaro Sdn Bhd
Trial Balance as at 31 December 2010
____________________________________________________________________________
Debit Credit
RM RM
Purchases and Sales 23,593 30,817
Rent 854 640
Water and electricity 422
Salaries and Wages 3,164
Insurance 305
Buildings 50,000
Fixtures and Fittings 10,000
Debtors and Creditors 31,660 12,060
Sundry expenses 506
Bank 3,847
Drawings 2,400
Vans 55,000
Motor expenses 1,133
Capital 142,750
Returns 240 210
Discounts 1,000 3,000
Carriage Inwards 500
Carriage outwards 320
Stock (1 January 2010) 4,303
Interest on loan 180
Bad debts 50
189,477 189,477
Closing stock is valued at RM 1100 at 31 December 2010.
Required: Prepare the Income Statement for the year ended 31 December 2010.
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