ACTIVITY ON INCOME STATEMENT CONSTRUCTION
The year end accounts of ABC Welfare Society on December, 31, 2007 appeared as under:
Accounts Rs. Income Expenses
Revenue from services 200,000
Income from investments 50,000
Interest and fee expense 30,000
Loan loss provision expense 20,000
Utilities expenses 40,000
Rent expense 80,000
Salary expense 70,000
Subscription income 10,000
Membership fee 10,000
Cash donations 200,000
Misc. expenses 100,000
Required:
1. Identify the nature of each item (√) in relevant column.
2. Prepare Income Statement for the period ending December 31, 2007 using the format
attached.
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