Leo is a wholesaler. He has little knowledge of accounting. He prepared the following income statement which contains some errors.

Prepare a corrected income statement for Leo for the year ended 30 April 20–1.

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Leo Income statement for the year ended 30 April 20-1 Revenue 82 300 Add Discount received 110 Opening inventory 4910 87 320 Less Purchases 49520 Returns from customers 1190 50 710 Less Closing inventory 5080 45630 Profit on goods 41690 Add Discount allowed 220 41910 Less Rent payable 8100 Less Rent receivable 6000 2100 Wages 12 100 Carriage inwards 100 Sundry expenses Final profit 960 15260 26650 %24