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Forming the income statement and balance sheets (Balance sheet (Name of…
Forming the income statement and balance sheets
Income statement
Name of company, statement of financial performance, for the year ended
__
Brackets for minuses
Sales revenue, total profits in right column
Opening stock, purchases, closing stock, cost of sales (bracket) in right and then gross profit in right
clo normally in notes
Operating expenses after gross such as rent, depreciation, impairments to goodwill
Due to accurals concept even if not paid still record it
Then non op income e.g. bank interest
Two seperate figures for profit before tax and profit after tax
Balance sheet
Name of company, statement of financial position, as at
__
NCA include property, goodwill, land
CA includes trade rec, pre payments, cash, inventories
NCL's include bank loan, pension
CL's include payables, accruals, tax
Don't need brackets for liabilities as it's clear
Under ownership equity asset reval is a capital reserve
Remember to add net profit from IS to retained earnings
If a loan is taken out, cash increases
Depreciation is minused from equity, not shown by a heading
Two columns- one for values and one for totals
Form a line under each section (doesn't need a heading for bs)
DO IS before BS so you have net profit figure to add to equity