Calculation of Expenses and Income

Calculation of Expenses and Income

The general calculations of the expenses and the incomes incurred by the Sweeney and Associate firm are:
Bank a/c
Dr Cr
Bal c/d $ 1,200 Bank loan accrued $1,200
$ 1,200 $1,200

Office Building a/c
Dr Cr
Bal c/d $ 13,200 Depreciation accrued $ 13,200
$ 13,200 $13,200

Depreciation of office building=$13, 200 pa =5 years
Revenue a/c
Dr Cr
Revenue accrued $ 64,000 Bal c/d $ 64,000
$ 64,000 $64,000

Accrued revenue=$64,000
Insurance a/c
Dr Cr
Bal c/d $ 1,800 Prepaid insurance $ 1,800
$ 1,800 $1,800

Prepaid insurance=$ 1,800
Income a/c
Dr Cr
Income accrued $ 7,500
Received income $3,500 Bal c/d $ 10,500
$ 10,500 $10,500

Pre-paid Income=$ 10,500 from King Biscuit company
Income received=$3,500
Salaries a/c

Dr Cr
Bal c/d 2,400 Accruals $ 2,400
$ 2,400 $2,400

Accrued salaries=$ 2,400
Total expenses=18,600
Total income=74,500
Thus making a deduction of the expenses from the income we get an excess in the income received.
The total income that has made by the company is 74,500

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