Income Statement template for Year 9 Accounting, displaying balances and calculations for the year ended 31 March 2021.

To solve this problem, we need to fill in the Income Statement (Trading and Profit and Loss Account) using the balances provided. We will calculate the values step-by-step, moving from Revenue down to the final Profit for the Year.

Here is the step-by-step calculation:

1. Calculate Net Revenue
* Revenue: $37,000
* Less: Return Inwards: $3,400
* Net Revenue: $37,000 - $3,400 = $33,600

2. Calculate Cost of Sales
* Opening Inventory (1 April 2020): $3,100
* Purchases: $9,700
* Less: Return Outwards: $3,750
* *Net Purchases:* $9,700 - $3,750 = $5,950
* Add: Purchasing Expenses:
* Carriage Inwards: $845
* Customs Duty: $200
* *Total Purchasing Expenses:* $845 + $200 = $1,045
* Cost of Goods Available for Sale:
* Opening Inventory ($3,100) + Net Purchases ($5,950) + Purchasing Expenses ($1,045) = $10,095
* Less: Closing Inventory (31 March 2021): $4,600
* Cost of Sales: $10,095 - $4,600 = $5,495

3. Calculate Gross Profit
* Gross Profit: Net Revenue ($33,600) - Cost of Sales ($5,495) = $28,105

4. Calculate Total Other Incomes
* Rent Received: $2,500
* Commission Received: $3,500
* Total Other Incomes: $2,500 + $3,500 = $6,000

5. Calculate Total Operating Expenses
We sum up all the expense items listed under "Less: OPERATING EXPENSES":
* Carriage Outwards: $650
* Insurance: $8,770
* Advertising: $595
* Office Wages: $8,000
* Rent Paid: $3,000
* Stationery: $500
* Motor Expenses: $1,000
* Commission Paid: $1,200
* Repairs: $250
* Total Operating Expenses: $650 + $8,770 + $595 + $8,000 + $3,000 + $500 + $1,000 + $1,200 + $250 = $23,965

6. Calculate Profit for the Year
* Profit for the Year = Gross Profit + Other Incomes - Operating Expenses
* Profit for the Year = $28,105 + $6,000 - $23,965
* Profit for the Year = $34,105 - $23,965 = $10,140

***

Final Answer:

Here are the correct amounts to fill in the boxes for the Income Statement:

Income Statement (Trading account) for the year ended 31 December 2021

| Item | Amount ($) | Subtotal ($) | Total ($) |
| :--- | :--- | :--- | :--- |
| Revenue | | | 37,000 |
| Less: Return Inwards | | | (3,400) |
| LESS: COST OF SALES | | | |
| Opening Inventory (1 April 2020) | | 3,100 | |
| Purchases | 9,700 | | |
| Less: Return Outwards | (3,750) | 5,950 | |
| Add: PURCHASING EXPENSES: | | | |
| Carriage inwards | 845 | | |
| Customs Duty | 200 | 1,045 | |
| *(Sum of Inv + Net Purch + Exp)* | | | 10,095 |
| Less Closing Inventory (31 March 2021) | | | (4,600) |
| COST OF SALES | | | (5,495) |
| GROSS PROFIT | | | 28,105 |
| Add: OTHER INCOMES | | | |
| Rent Received | | 2,500 | |
| Commission received | | 3,500 | |
| *(Total Other Incomes)* | | | 6,000 |
| Less: OPERATING EXPENSES | | | |
| Carriage Outwards | 650 | | |
| Insurance | 8,770 | | |
| Advertising | 595 | | |
| Office Wages | 8,000 | | |
| Rent paid | 3,000 | | |
| Stationery | 500 | | |
| Motor expenses | 1,000 | | |
| Commission paid | 1,200 | | |
| Repairs | 250 | | |
| *(Total Operating Expenses)* | | | (23,965) |
| PROFIT FOR THE YEAR | | | 10,140 |