00:01
So for today i am going to be writing down the basic format of an income statement.
00:08
So always you start with your title.
00:11
And in your title you should include the company's name, the name of the statement that is income statement, and the date at which it is being prepared.
00:20
So you might write something like this.
00:22
Let's say the company is called abc.
00:25
So you say abc's income statement.
00:52
As at 30 june 2020 for an example, right? and then after this statement, right, the first thing, yeah, this is just underlined to show that it's a, it's a topic, right? then the first thing that you always start with is your sales, right? so you're going to have your sales, right? and we always have two columns, two or three columns.
01:44
It depends on how you were taught.
01:47
But the minimum is two, right? so i have, you should also write dollars to show the currency always, right? then if it's in thousand, you just need to write zero, zero, zero.
02:06
Right.
02:07
So i'm going to have my sales and they put my figure in here.
02:11
Right.
02:12
Then sometimes we remove things from the gross sales to get net sales.
02:18
So we might say less sales returns, right? or we might even say less sales discounts.
02:36
It's just an example of things that you might subtract from the gross sales.
02:42
But usually the sales returns or returns.
02:47
Inwards, right? then you have this figure.
02:50
So because we're saying less, we put it in brackets to show that we are subjecting, right? then we get a figure that we shall call net sales, right? and then after this, we add other income.
03:17
So under other income, you may have things like discount received or anything like rent received.
03:28
Something, something received is always part of your other income, right? so i'm going to add this...