Score:    
          Estimated:    
                 
      Trial Balance (TB) DR CR      
      Sales   £278,000      
      Returns In £2,800        
      Opening Inventory £15,600        
      Purchases £64,000        
      Returns Out   £3,400      
      Carriage In £950        
      Commission Received   £25,000      
      Allowance for doubtful debts   £840      
      Rent £12,500        
      Salaries £120,000        
      Water Bill £1,400        
      Bad Debts £850        
      Carriage Out £1,700        
      Accumulated Depreciation - Premises   £83,400      
      Accumulated Depreciation - Machinery   £4,800      
      Premises £450,000        
      Machinery £70,000        
      Accounts Receivable £23,500        
      Bank £17,400        
      Cash £5,200        
      Mortgage   £230,500      
      Capital   £111,860      
      Drawings £3,100        
      Accounts Payable   £16,200      
      Loan 5% per annum   £35,000      
             
                 
    End of Year Adjustments:      
    Closing Inventory 21400        
    Depreciation          
    5% Premises Reducing Balance      
    The machinery was bought for £70,000 and will be sold after 15 years for      
    52000 (the residual value). Depreciate using the straight line method.      
      Water Bill is prepaid  £360        
      Salaries owing £2,500        
    5% A full year's loan interest to be accrued.          
    A customer is included in the trial balance whom the owner now wants to      
    write off as a bad debt. The customer owed £750.      
    Allowance for Doubtful Debts rate 14% of debtors      
                 
      Income Statement £ £      
             
             
               
               
             
             
             
             
             
               
             
               
             
      Less Expenses (use TB order)          
             
             
      EOYA Expenses (use EOYA order)          
             
             
             
             
             
             
             
               
             
      Balance Sheet £ £ £    
      Fixed Assets (use TB order)          
             
           
             
           
               
      Current Assets (use TB order)          
             
             
               
             
             
      EOYA (Use EOYA order)          
             
             
               
      Current Liabilities (use TB order)          
             
      EOYA (Use EOYA order)          
             
             
               
      Fixed Liabilities          
             
             
               
      Net Assets