Prepare the profit or loss statement for Rams law firm for the year ending 30 June 2021

Ram operates a small law firm in Bondi, Sydney. He has a small office and an employee. Ram rents the office and owns the office equipment (desk, chairs and filing cabinets). Ram also insures his business. Ram wants to work out how much profit or loss his business made during the last financial year which started on 1 July 2020 and ended on 30 June 2021. He has asked for your help in calculating the profit or loss as he knows that you are studying accounting in your degree program at college. Ram provides you with the following information from his accounting records for the year ending 30 June 2021. Account Dr Cr Fees Revenue 138,950 Salaries payable 10,000 Salaries expense 58,860 Telephone expense 6,770 Rent expense 10,900 Interest expense 520 Depreciation expense - office equipment 1,020 Office supplies expense 3,460 Insurance expense 2,184 Prepaid insurance 5,000