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    Starting my A-Levels in September and been given work to do to prepare for college, no help and we've got to complete it, don't have a clue what to doName:  image.jpg
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    Can you at least flip it the right way
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    (Original post by Atlas Thugged)
    Can you at least flip it the right way

    I took the photo the right way up lmao
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    (Original post by Atlas Thugged)
    Can you at least flip it the right way
    Won't go the right way anyway
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    (Original post by MollieT3)
    Won't go the right way anyway
    I got it.

    You need to use the trial balance to produce the income statement and the balance sheet. On the left you have the debits and the right the credits.


    Starting off with the income statement, put revenue at the top and then deduct the cost of sales. When you work out the figure for cost of sales, opening stock forms a part of this and closing stock is deducted from this that is, i.e. closing stock is a positive in the income statement because it's taken away from the cost of sales. Other parts of the cost of sales include wages, salaries, light & heat, rent rates and insurance, other business costs.


    Imo it looks more tidy if you subtract from sales the returns inwards and discounts allowed, then subtract from purchase the returns outwards and discounts received. I would also add the commission received to sales.


    This then gives the gross profit, from this you should subtract the distribution costs i.e. advertising, carriage inwards and carriage outwards to give the operating profit.


    Add the finance incomes/costs to this, so add the rent and interest received, then subtract the interest payable


    This gives the profit before tax
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    (Original post by Atlas Thugged)
    I got it.

    You need to use the trial balance to produce the income statement and the balance sheet. On the left you have the debits and the right the credits.


    Starting off with the income statement, put revenue at the top and then deduct the cost of sales. When you work out the figure for cost of sales, opening stock forms a part of this and closing stock is deducted from this that is, i.e. closing stock is a positive in the income statement because it's taken away from the cost of sales. Other parts of the cost of sales include wages, salaries, light & heat, rent rates and insurance, other business costs.


    Imo it looks more tidy if you subtract from sales the returns inwards and discounts allowed, then subtract from purchase the returns outwards and discounts received. I would also add the commission received to sales.


    This then gives the gross profit, from this you should subtract the distribution costs i.e. advertising, carriage inwards and carriage outwards to give the operating profit.


    Add the finance incomes/costs to this, so add the rent and interest received, then subtract the interest payable


    This gives the profit before tax
    Thank you so much
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    (Original post by MollieT3)
    Thank you so much
    I personally would tidy up the information and present that as the income statement with a separate sheet for how you got to the figures


    and no problem
 
 
 
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