Income Statement Layout Aqa

If prepayment added eg 3 970 award 1 mark.

Income statement layout aqa. As you can see this example income statement is a single step statement because it only lists expenses in one main category. Provision for doubtful debts 2 470 61 410 prepayments 4 060. Without question a multi step income statement is more organized but more complicated than the single step format. Income statement format layout.

Download specification for first teaching in 2017 526 1 kb. In income statement there is a standard format that is used while preparing the income statement of the company which reports the sales revenue figure of the business at the start then it adds other income into it after that all the business expenses are deducted from the total amount of revenue and other income generated and finally we get the amount of net. If accrual deducted eg 20 349 award 1 mark. Here is how each would look like.

Use this with students in the classroom so that they understand how these statements will be presented. Sole traders name income statement for the year ended 31 december 2xxx revenue 780 000 less. W5 depreciation fixtures at cost 12 500 1. You can either present a 1 single step income statement or 2 multi step income statement.

Single step income statement. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. If accrual shown separately on income statement award 1 mark.

There are two ways of presenting an income statement. How to prepare income statements and statements of financial position from a trial balance including adjustments from the application of accounting concepts. Here is an example of how to prepare an income statement from paul s adjusted trial balance in our earlier accounting cycle examples. W4 insurance original insurance 3 481 1 less prepayment 489 1 2 992 if prepayment shown separately on income statement award 1 mark.

Income statements this shows the layouts of income statements. The presentation considers the basic purpose of income statements before examining how the statement is structured and how stakeholders are interested in this key financial account.