A simple income and expenses record
One list of money in and money out is enough for many sole traders. Fill in the totals and find the profit for a month.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
In this room: 2 tasks, 8 questions
- What the record looks like3 questions
- Types, drawings and the double entry5 questions
A simple record is a list with one line for each amount that comes into or goes out of the business.
Each line has a date, what it was for, and the amount in the Income column or the Expense column.
| Date | Details | Type | Income | Expense |
|---|---|---|---|---|
| 2 Jun | Mrs Okafor, landing and stairs | Sales | 480.00 | |
| 5 Jun | Trade paint | Materials | 96.50 | |
| 9 Jun | Fern Café, front room | Sales | 750.00 | |
| 12 Jun | Van fuel | Travel | 52.00 | |
| 18 Jun | Brushes and rollers | Materials | 38.50 | |
| 24 Jun | The Hendersons, two bedrooms | Sales | 620.00 | |
| 27 Jun | Public liability insurance | Insurance | 28.00 |
Profit for the month is the total of the Income column less the total of the Expense column.
Answer the questions below
2 more questions follow in this task.
Each cost has a type, such as materials or travel. At the year end the costs are needed by type, so add each type up on its own.
| Date | Details | Type | Income | Expense |
|---|---|---|---|---|
| 2 Jun | Mrs Okafor, landing and stairs | Sales | 480.00 | |
| 5 Jun | Trade paint | Materials | 96.50 | |
| 9 Jun | Fern Café, front room | Sales | 750.00 | |
| 12 Jun | Van fuel | Travel | 52.00 | |
| 18 Jun | Brushes and rollers | Materials | 38.50 | |
| 24 Jun | The Hendersons, two bedrooms | Sales | 620.00 | |
| 27 Jun | Public liability insurance | Insurance | 28.00 |
Money you take for yourself is drawings. Make a note of it, but keep it out of the Expense column.
Behind each line is a double entry. A cost paid from the bank is a debit to the expense account and a credit to the bank.
Answer the questions below
4 more questions follow in this task.