Consider the following transactions and then prepare income statement in the book of General Motor on 31/12/2019.

Cash Sales................................................................................................   10000

Credit Sales................................................................................................   5000

Interest on Deposits................................................................................. 30000

Profit on sales of fixed assets.................................................................... 7000

Profit on sales of investments................................................................... 8000

Insurance claim........................................................................................... 5000

Duty drawback............................................................................................  6000

Discount allowed......................................................................................... 1000

Royalty fees..................................................................................................   500

Interest on loan............................................................................................  400

Interest on capital....................................................................................... 1200

Discount on bill........................................................................................... 1000

Bank charges................................................................................................. 600

Loss by fire/accident/theft........................................................................  7000

Loss on sales of fixed assets..................................................................... 3000

Purchase....................................................................................................  20000

Office supplies expenses........................................................................... 3000

Cash discount received.............................................................................. 1000

Custom duties............................................................................................  1000

Freight outward........................................................................................... 1200

Insurance premium.....................................................................................  500

Brokerage expenses................................................................................... 1500

Depreciation expenses............................................................................... 2000

Answer rating: 100% (QA)

Income Statement As on Dec 31 Revenue Cash Sales Credit Sales Interest on Deposit Profit on sale ... View the full answer