What is income statement and how to prepare the account.

An income statement is not an account it is a report of expenses and revenues for the period. When the period ends you close the expenses and revenues to the retained earnings account which goes on the balance sheet. The balance sheet is basically a snapshot of your assets and liabilities and capital. And when you're finished assets need to equal liabilties and stockholders equity.

Accounting is not simple and can't be completely answered with just one question.. talk to your teacher

Assuming you are at a beginning level and do not have to do anything fancy with the income statement, here's an example of a basic one:

Single-Step Income Statement | AccountingCoach.com (http://www.accountingcoach.com/online-accounting-course/04Xpg03.html#income-statement-single-step)