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How do I prepare an income statement?

How do I prepare an income statement?

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Answer #1

To prepare an Income statement, We start by Journalising the transactions.

After that, we post the entries in their respective ledger accounts.

From those ledger accounts we prepare Trial Balance.

Trial Balance in turn helps us to prepare Income Statement.

The income statement is one of the major financial statement of the company that shows their profit and losses. The profit and loss statement shows the company's ability to create profit, generate sales and manage expenses over a period of time.

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