Junaid provided the following information for his business for the year ended 31 December 2019. Inventory 1 January 2019 \5 000 Inventory 31 December 2019 8 000 Revenue \100 000 Purchases 70 000 Carriage inwards \2 000 Rent 12 000 Wages \15 000 Commission received 3 000 Prepare an income statement for Junaid for the year ended 31 December 2019.

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. C1 for correct heading (Name, Income Statement, For the year ended 31 December 2019) (1)
2. C1 for Revenue (1)
3. C1 for Cost of sales (1)
4. M1 for Opening inventory + Purchases + Carriage inwards – Closing inventory (1)
5. A1 for correct calculation of Cost of sales (69 000) (1)
6. C1 for Gross profit (1)
7. C1 for Less Expenses (1)
8. C1 for Add Other income (1)
9. A1 for all expenses correct and total (27 000) (1)
10. A1 for Net profit (7 000) (1)