Accounting for IGCSE & O level - Final Statements (Section 14 - No. 37)
What is the first step in preparing the first part of the income statement?
Credit the purchases account
Debit the sales account and the balance to 'Sales'
Enter the closing stock amount
Write the sales account with the final profits balance to 'Sales'
Explication
The first step is to write the sales account to 'Sales'.