Question

How do you prepare an income and expenditure statement?

Answer 1

Instructions to set up an income proclamation:

Stage 1: Determine the Trial Balance.

Stage 2: Determine the Revenue Amount.

Stage 3: Determine the Cost of Goods Sold Amount.

Stage 4: Calculate the Gross Margin.

Stage 5: Determine Operating Expenses.

Stage 6: Calculate Income.

Stage 7: Calculate the Income Tax.

Stage 8: Calculate Net Income.

Stage 9: Prepare the Income Statement Header.

Also see:

• Income and Expenditure Account
• Difference Between Capital Expenditure and Revenue Expenditure
• Classification of Expenditure

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