Format of statements: Income statement for the year ended... Sales, Sales - debtors allowances, Less: Cost of Sales, Gross Profit, Plus: Income, Gross Operating Income, Less: Expenses, Net Profit for the year

The template provides the following main sections:

• Sales
• Less: Cost of Sales
• Gross Profit
• Plus: Income
• Gross Operating Income
• Less: Expenses
• Net Profit for the year

Income" and "Less: Expenses".

• Under "Plus: Income": Common examples include Rent received and Commission received.
• Under "Less: Expenses": Common examples include Salaries, Wages, Rent paid, Telephone, Water and electricity, Insurance, and Bank charges.
• The note "Sales - debtors allowances" indicates that the "Sales" figure in the statement should represent net sales (Gross Sales less Debtors allowances/Sales Returns). For this format, we will assume the "Sales" line is the net figure.

We will use "XXX" as placeholders for amounts to illustrate where figures would be placed in the two R (Rand) columns.

Income Statement Format

INCOME STATEMENT FOR THE YEAR ENDED...

Item	R	R
Sales		XXX
Less: Cost of Sales		(XXX)
Gross Profit		XXX
Plus: Income
• Rent received	XXX
• Commission received	XXX	XXX
Gross Operating Income		XXX
Less: Expenses
• Salaries	XXX
• Wages	XXX
• Rent paid	XXX
• Water and electricity	XXX
• Insurance	XXX
• Bank charges	XXX	(XXX)
Net Profit for the year		XXX