Income statement,urgent!?

Question

-Cash and cheques received £

Sales of novelties bought from Kay Ltd 2,500

Appearance fees as entertainer 18,320

-Cash and cheques paid

To Kay Ltd for novelties to be sold 1,500

Wages 1,200

To Cas Limited for playing cards 400

Travel expenses 2,600

Rabbits and rabbit food 430

Cleaning 140

To Mary for ‘disappearing lady’ apparatus 2,000

George’s drawings (i.e. the money George took out of the

business for his own living as he is not paying himself a salary)

11,890

Other information

Cash balance at 31 December 2007 560

Bank balance at 31 December 2007 120

Total invoices received from Kay Ltd up to

31 December 2007

1,700

Stock of unsold novelties at cost price at 31 December 2007 80

Amount owing from customers for novelties 350

Other fixed assets still owned at 31 December 2007

Costume at cost 3,000

Magic books and equipment at cost 2,000

Owner’s capital (costume, magic books and equipment and

£20 initial travel expenses from owner’s savings)

5,020.

Depreciat 940

Answer 1

perhaps for a majority of these questions, there's no occupation around answering them.

there certainly is for building income statements, but who's to blame you for trying? (shrug)

Answer 2

Although I am in the United States I suspect there aren't any significant differences in accounting for sole proprietorships.  

First you have two businesses and here in the US you would file separate schedule C forms for each of them.

Your first business is selling novelties.  You Income Statement for the novelty business is based on sales less cost of goods sold.

Cost of Goods Sold is computed as:

   Beginning inventory (which you don't mention)

   Plus Purchases

   Plus the cost of labor (not including what you paid yourself.)

   Plus the cost of materials and supplies

   Minus ending inventory

   Minus the cost of anything you took out of the business for personal use.

   The Cost of Goods is subtract from the income from selling the novelties and the result is your income from the novelty business.

Note that the amount owing from customers does not affect your income.  

Your major source of income is as a performer.  In this case your income is the appearance money you receive.  Your expenses are:

   Wages 1,200

   Playing cards 400

   Travel expenses 2,600

   Rabbits and rabbit food 430

   Cleaning 140

   Depreciation 940

Your income is calculated as:

   Appearance money

   Minus the sum of the expenses.

Note that the money spent on costume, Disappearing Lady Apparatus, magic books and equipment is not an expense -- these  moneys were spent to purchase assets.  The depreciation on the assets is an expense and reduces your income.

Also note that the money withdrawn from the business by George does not effect the profit or loss of the business.

The other items you list are also not related to the income statement.

Hope this helps.