Kelly is a trader. Her financial year ends on 31st March. The balances remaining on her books on 31st March 2017 after calculating gross profit for the year included the following: $Gross profit39 100Capital50 000Drawings2 340Wages18 650Office expenses4 470Motor expenses1 570Discount allowed250Rent9 600Insurance2 400Carriage outwards1 160Advertising cost3 110Discount received3 000 Prepare Kelly’s Income statement starting with gross profit and calculate the profit or loss for the year ended 31st March 2017.

The financial statements of an entity are the financial reports that depict the performance of the…

Answered: Kelly is a trader. Her financial year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kelly is a trader. Her financial year ends on 31^st March. The balances remaining on her books on 31^st March 2017 after calculating gross profit for the year included the following:

	$
Gross profit	39 100
Capital	50 000
Drawings	2 340
Wages	18 650
Office expenses	4 470
Motor expenses	1 570
Discount allowed	250
Rent	9 600
Insurance	2 400
Carriage outwards	1 160
Advertising cost	3 110
Discount received	3 000

Prepare Kelly’s Income statement starting with gross profit and calculate the profit or loss for the year ended 31^st March 2017.

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