BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Total expenses (Debit column total) are subtracted from total revenue (Credit column total) to find net income. Net income is entered as a debit at the bottom of the Income Statement section of the work sheet. On the same line, enter the net income amount in the Balance Sheet Credit column.

Detailed explanation-2: -Net income appears in the Income Statement credit column and in the Balance Sheet debit column. The net income appears on a worksheet in the Income Statement Credit column as the net income has a credit balance and in the Balance Sheet debit column in the retained earnings account.

Detailed explanation-3: -(1) If there is a Net Income, then you should have the difference entered in the Dr column of the Income Statement and in the Cr column of the Balance Sheet. (2) If there is a Net Loss, then you should have the difference entered in the Cr column of the Income Statement and in the Dr column of the Balance Sheet.

Detailed explanation-4: -The first column lists the accounts for a company’s balance sheet and income statement. The balance sheet accounts include cash, accounts receivable, inventory, accounts payable, and owner’s capital. The income statement accounts include sales, marketing expenses, interest and taxes.

Detailed explanation-5: -The income statement shows us three columns, the far-right column being the full year audited results, and the other two columns being six months for the period ended for the current year and the previous year in order to compare.