Balance off the accounts and extract a trial balance for sole trader Airman Co. as at 30 September 2020: DR CR £ £ Capital 306,070 Drawings 26,500 Cash at bank 20,000 Cash in hand 8,500 Accounts receivable (Debtors) 70,000 Accounts payable (Creditors) 16,000 Inventory (Stock): 30 September 2019 36,000 Van 16,000 Fixtures and Fittings 32,000 Sales 80,000 Purchases 150,000 Return inwards (Sales Returns) 2,000 Carriage inwards 720 Returns outwards (Purchase Returns) 600 Carriage outwards 400 Motor expenses 1,200 Rent 5,000 Telephone charges 620 Wages and salaries 32,000 Insurance 830 Office expenses 600 Sundry expenses 300 402,670 402,670 Inventory as at 30 September 2020 was £120,000. Required a. Draft an Income Statement for Airman Co. for the year ending 30th September 2020 b. The records show that the Airman Co. has been profitable during 10 years since 2009. Due to COVID-19 outbreak, explain the possible impact of COVID-19 on company Income statement items.
Balance off the accounts and extract a
2020:
DR CR
£ £
Capital 306,070
Drawings 26,500
Cash at bank 20,000
Cash in hand 8,500
Accounts payable (Creditors) 16,000
Inventory (Stock): 30 September 2019 36,000
Van 16,000
Fixtures and Fittings 32,000
Sales 80,000
Purchases 150,000
Return inwards (Sales Returns) 2,000
Carriage inwards 720
Returns outwards (Purchase Returns) 600
Carriage outwards 400
Motor expenses 1,200
Rent 5,000
Telephone charges 620
Wages and salaries 32,000
Insurance 830
Office expenses 600
Sundry expenses 300
402,670 402,670
Inventory as at 30 September 2020 was £120,000.
Required
a. Draft an Income Statement for Airman Co. for the year ending 30th September 2020
b. The records show that the Airman Co. has been profitable during 10 years since 2009. Due to COVID-19 outbreak, explain the possible impact of COVID-19 on company Income statement items.
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