Chapter 3: Financial statements
Skeletons
Income statement for the ____________________ ended _____________
note R
Sales
Debtor’s allowances gets subtracted from sales
Cost of Sales ( )
Gross profit
Other operating income
Rent income
Bad debts recovered
Provision for bad debts adjustment
If previous year’s amount = too much → income
Profit on sale of asset
Gross operating income
Other operating expenses ( )
Any other expenses that the
business incurred
Provision for bad debts adjustment
If previous year’s amount = too little → expense
Director’s fees
Expenses unique to companies
Audit fees
Trading stock deficit
ALWAYS write these in
Depreciation
Operating profit/loss
Interest income 1
Profit before interest expense
Interest expense 2 ( )
Profit before tax (100%)
Income Tax ( )
Income tax amount that’s given in the adjustments
Net profit/loss for the year
, Balance sheet as at ______________________________________________
Note R
Assets
Non-current assets
Fixed/tangible assets 3
Financial Assets (fixed deposit)
Current assets
Inventories 4
Trade and other receivables 5
Cash and cash equivalents 6
Total assets
Equity and liabilities
Owner’s equity
Ordinary share capital 7
Retained income 8
Non-current liabilities
Loan
Current liabilities
Trade and other payables 9
Current portion of loan
Bank overdraft
Total equity and liabilities
Skeletons
Income statement for the ____________________ ended _____________
note R
Sales
Debtor’s allowances gets subtracted from sales
Cost of Sales ( )
Gross profit
Other operating income
Rent income
Bad debts recovered
Provision for bad debts adjustment
If previous year’s amount = too much → income
Profit on sale of asset
Gross operating income
Other operating expenses ( )
Any other expenses that the
business incurred
Provision for bad debts adjustment
If previous year’s amount = too little → expense
Director’s fees
Expenses unique to companies
Audit fees
Trading stock deficit
ALWAYS write these in
Depreciation
Operating profit/loss
Interest income 1
Profit before interest expense
Interest expense 2 ( )
Profit before tax (100%)
Income Tax ( )
Income tax amount that’s given in the adjustments
Net profit/loss for the year
, Balance sheet as at ______________________________________________
Note R
Assets
Non-current assets
Fixed/tangible assets 3
Financial Assets (fixed deposit)
Current assets
Inventories 4
Trade and other receivables 5
Cash and cash equivalents 6
Total assets
Equity and liabilities
Owner’s equity
Ordinary share capital 7
Retained income 8
Non-current liabilities
Loan
Current liabilities
Trade and other payables 9
Current portion of loan
Bank overdraft
Total equity and liabilities
