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    Worksheet 27: Income Statements (Profit and Loss)

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    Worksheet 27: Income Statements (Profit and Loss)

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    Bipin
    942 views1 page

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    Income Statement Tasksheet.pdf

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    942 views1 page

    Worksheet 27: Income Statements (Profit and Loss)

    Uploaded by

    Bipin

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Section 5

    Financial information 23 Income statements


    and financial decisions

    Worksheet 27: Income statements (profit and


    loss)
    Scenario
    Vacsac Ltd supply vacuum cleaner bags to retail outlets and have just finished another financial
    year on 31 March. They now have to prepare the company accounts for the year. These will be
    issued to shareholders and submitted to the Tax Authorities for tax purposes.
    Vacsac Ltd have hired you, Patel, Smith and Chan, Chartered Accountants, to prepare their
    company accounts. They have given you the following information:

    Memorandum
    To: Patel, Smith and Chan
    From: Finance Manager, Vacsac Ltd
    Date: 25 March 201…
    These are the figures you requested to prepare our income statement.
    Total sales revenue amounted to $438 000. Our inventory at the beginning of the year was
    $50 000 and we purchased $200 000 of inventory in the year. We had $60 000 of inventory
    left at the end of the year.
    In addition to this we spent the following on expenses: heat and light $5 000, rent and
    rates $15 000, wages $150 000, insurance $5 000, depreciation $10 000, office expenses
    $5 000 and advertising $8 000.

    Task 1
    Using the information provided, draw up the income statement (profit and loss account) for the year
    ending 31 March for Vacsac Ltd.

    Income statement (Profit and loss account) for the year ending 31 March for Vacsac Ltd
    Sales revenue _____
    Opening inventory
    Purchases
    Closing inventory _____
    Cost of sales _____
    Gross profit _____

    Expenses
    Wages
    Rent/rates
    Heat and light
    Insurance
    Office expenses
    Depreciation
    Advertising _____
    Total expenses _____
    Net profit _____

    Task 2
    Net profit is sometimes retained by the business. State two other uses of net profit.
    ______________________________________________________________________________

    Cambridge IGCSE Business Studies Teacher’s CD © Hodder & Stoughton Limited 2013 1/1

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