《會計英語第四版》課件單元7

LessonSeven:IncomeStatementAims:1.Explainhowaccountantsmeasureincome.2.Tointroducetheaccountingconceptswhichgovernprofitmeasurement.3.Tounderstandtheimportanceofgrossprofit.4.ToconstructtheincomestatementofaSoleTrader.7.1

IncomeStatement:IntroductionIncomestatementaccount(alsocalledtheprofitorlossaccount)isareportpresentingallfiguresconcerningrevenue,costandexpenseaccumulatedduringawholeyear.7.2

TheCalculationofProfitInaccordancewiththeaccrualsconceptprofitiscalculatedbymatching:(1)Incomeearnedduringtheperiod(whetherreceivedornot);(2)Expensesrelatingexclusivelytotheperiod/usedup(whetherpaidforornot).7.4

TheImportanceofGrossProfit

Income

statement

for

Month

1Sales(3units@1.5$4.5LesscostofsalesPurchase(5@1)$5.00Lessclosingstock(2@1)$2.00$3.00Grossprofit1.5$7.5

NextMonth:Example(Continued)Month2:Purchases7articles@$1.00Sales8articles@$1.50

Required:CalculatetheGrossProfitforMonth2.Income

statement

for

Month

2$$Sales

(8

units)12.0Less

Cost

of

Sales:Opening

Stock

(2

units)2.00Add

Purchases

(7

units)7.00(Available

for

sale

9

units)9.00Less

Closing

Stock

(1

unit)1.008.00Gross

Profit

(33.33%)4.007.6

ThePreparationoftheFinalAccountsofaSoleTraderTrial

Balance

as

at

December

31st,2012$$Stock

at

Jan.

1st,20124

000Purchases50

560Sales74

130Wages

and

salaries13

700Rent

received1

290Rates2

960Office

expenses2

500Telephone1

500Trade

Debtors8

950Trade

Creditors3

860Office

equipment5

980Motor

vehicles9

800Drawings15

960Cash

at

bank4

970Sammys

capital41

600120

880

120

880IncomestatementfortheyearendedDec.31st,2012Sales$74

130Less

Cost

of

Sales:4

000Opening

stock50

560Add

Closing

stock54

5604

69049

870Gross

Profit24

260Add

Other

Income1

290Rent

received25

550Less

OverheadsWages13

700Rates2

960Office

expenses2

500Telephone1

500

20

660

Net

Profit

4

890

BusinessBalanceSheet

AsatDec.31st,2012Current

Assets

Cash

&

Bank$4

970Trade

Debtors8

950Stock4

69018

610Fixed

AssetsOffice

Equipment5

980Motor

Vehicles9

80015

780Creditors:

amounts

due

within

one