“X” Company

Income statement (Single Step)

For the year ended………………………..

Particulars Amount

Revenue………………………………………… **
Less: Expenses
.
.
.
. **
Net Profit/ Net loss……………… **
 “X” Company
Income Statement (Classified/ Multiple steps)
For the year ended………………………..

Particulars Amount(Tk.) Amount(Tk.) Amount(Tk.) Amount(Tk.)

Sales *
Less: Sales returns and *
allowance
Less: Sales discount *
*
Net sales *
Less: cost of goods sold
Opening inventory *
Add: Purchase *
Add: Freight in *
Less: Purchase return *
Less: Purchase discount *
*
Less: Ending inventory *
Cost of goods sold *
Gross profit *
Less: Operating expenses
Administrative expenses
Office salaries *
Rent expenses *
Office expenses *
Supplies expenses *
Depreciation expense *
Insurance expenses *
Miscellaneous expense *
Utility expenses *
*
Selling expenses
Store salaries *
Advertising expenses *
Freight out *
Sales commission *
Depreciation expense *
Doubtful expense *
*
Total operating expense *
Operating income *
 Add: Non-operating income
Interest revenue *
Gain on sales of fixed asset *
*
Less: Non operating expense
Interest expenses *
Loss on sales of fixed asset *
*
Income before tax *
Less: income tax *
Net income ( after tax) *

“X” Company
Owner’s equity statement
For the year ended………., ……….

Particular Amount

Opening/Beginning, Capital **
Add:
Net income………………………………………… **
Additional investment…………………………… **

Less:
Drawings…………………………………………… **
Net Loss…………………………………………… **
Dividend payment………………………………… **

Owners equity ending **

 Classified Balance Sheet

 Current Asset:
A company expects to convert in cash or use up within one year or in an operating cycle.
An operating cycle of the company is the average time that is takes to purchase inventory , sell it
on account and then collect cash from the customers.
Examples:
 Cash and cash & equivalent **
 Short term investment **
 Accounts receivables **
Less: Doubtful expense **
Less: Allowance for Doubtful expense **
**
 Supplies
 Inventory (ending) **
 Prepaid expense **
 Any revenue receivable **

 Long term investment:

Assets that are held for many years (more than 1 year).
 Investment in marketable security (bond or stock)
 Any long term investment.

 Property, plant & Equipment:

Property, plant and equipment are assts with relatively long useful life that a company is currently
using in operating the business. This category includes-
 Land **
 Building **
 Machinery **
 Equipment **
**
Less: accumulated depreciation **
**
 Intangible Asset:
Do not have any physical substance yet often are valuable. Gives the company an exclusive right
of use for a specific period of time.
 Goodwill
 Copyright
 Trademark
 Patent
 Franchises
 Liabilities and owners equity
 Current Liability:
Current liabilities are obligations that the company is to pay with in the coming year. Common
examples are-

 Notes payable.
 Accounts payable.
 Current maturities of long term debt.
 Other current payable.
 Tax payable.
 Accrued compensation payable.
 Wage payable.

 Long term Liability:

Long term liabilities are obligations that a company expects to pay after one year.

 Long-term debt.
 Deferred income tax.
 Other long term liabilities.

Owner’s equity:
Corporations divide owner’s equity into two accounts-
(i) Capital stock.
(ii) Retained earnings.