Year 9 ABCD & Express

Revision – 1 – Income Statement

The following balances were extracted from the book of Ali on 31 December 2021

Loan (repayable in 2029)

4,000

Interest on loan 700

Trade payables 3,000
Building 19,000
Premises 2,000
Inventory, 1 Jan 2021 10,000
Carriage inwards 700
Capital 20,000
Advertising 1,340
Purchases 24,000
Returns Inwards 200
General expenses 500
Rent received 450
Interest earned 1,800
Repairs of furniture 300
Duty on purchases 500
Cash at bank 1,800
Freight & Insurance 850
Rent 600
Sales 56,000
Returns outwards 400
Carriage outwards 340
Additional information

Inventory as 31 December 2021 was valued at $2500 at cost price and $3,700 at net
realiseable value

REQUIRED

Prepare the income statement for the year ended 31 December 2021