Income statement from incomplete records Flashcards
1
Q
How to calculate revenue?
A
Sales ledger control account credit sales
Cash account cash sales
Mark-up/GPM if given cost of sales/Gross profit
2
Q
Sales revenue =
A
Credit Sales + Cash Sales
3
Q
How to calculate purchases and cost of sales?
A
Purchase ledger control account credit purchases
Cash account cash purchases
Inventory turnover and manipulating figures
4
Q
Purchases =
A
Credit purchases + cash purchases - goods taken for own use
5
Q
How to calculate expenses?
A
Include cash expenses
Use cash account for cash stolen
Calculate depreciation
