From the trial balance below:        
    Identify each item using a letter:        
    "g" if the item is needed for gross profit      
    "e" if the item is an expense        
    "ca" if the item is an current asset        
    "fa" if the item is a fixed asset        
    "cl" if the item is a current liability        
    "fl" if the item is a fixed liability        
    "c" if the item affects capital        
    "r" if the item is a revenue        
    "d" if the item is calculated on prior to entry      
    Then complete the income statement.      
    Use ADD for "allowance for doubtful debts".      
    "ADD increase/decrease" in the income statement.    
    "Less ADD" in the balance sheet.        
               
  Q1)          
    ID Trial Balance (TB) DR CR    
    Sundry Expenses £2,400      
    Opening Inventory £13,400      
    Cash £4,500      
    Loan (Repay Next Year)   £12,500    
    Carriage Out £790      
    Capital   £304,185    
    Buildings £380,000      
    Wages £6,700      
    Carriage In £1,300      
    Returns £300 £780    
    Accounts Receivable £7,800      
    Purchases £15,700      
    Equipment £65,000      
    Bank £14,500      
    Loan Interest £875      
    Rent Received   £2,300    
    Accounts Payable   £3,200    
    Bad Debts £230      
    Mortgage   £135,000    
    Drawings £500      
    Sales   £56,900    
    Electricity £870      
           
               
    End of Year Adjustments (EOYA):    
    Closing Inventory £8,900      
    Allowance for doubtful debts rate is 3% of debtors    
               
      Income Statement £ £    
           
           
             
             
           
           
           
           
           
             
           
             
           
             
           
           
           
           
           
           
      EOYA        
           
             
           
               
      Balance Sheet £ £ £  
             
           
           
             
             
           
           
           
             
           
           
             
             
           
           
             
             
           
           
           
           
           
             
    From the trial balance below:        
    Identify each item using a letter:        
    "g" if the item is needed for gross profit      
    "e" if the item is an expense        
    "ca" if the item is an current asset        
    "fa" if the item is a fixed asset        
    "cl" if the item is a current liability        
    "fl" if the item is a fixed liability        
    "c" if the item affects capital        
    "r" if the item is a revenue        
    "d" if the item is calculated on prior to entry      
    Then complete the income statement.      
    Use ADD for "allowance for doubtful debts".      
    "ADD increase/decrease" in the income statement.    
    "Less ADD" in the balance sheet.        
  Q2)          
    ID Trial Balance (TB) DR CR    
    Loan Interest £11,500      
    Capital   £73,610    
    General Expenses £3,200      
    Drawings £780      
    Carriage In £740      
    Bad Debts £560      
    Cash £3,200      
    Electricity £940      
    Returns £670 £840    
    Opening Inventory £5,300      
    Sales   £130,700    
    Loan (Repay in 5 years)   £230,000    
    Accounts Payable   £6,300    
    Carriage Out £560      
    Salaries £11,300      
    Mortgage   £150,000    
    Buildings £450,000      
    Accounts Receivable £11,500      
    Purchases £34,800      
    commissions   £6,300    
    Bank £10,700      
    Machinery £52,000      
           
               
    End of Year Adjustments (EOYA):    
    Closing Inventory £7,800      
    Allowance for doubtful debts rate is 5% of debtors    
               
      Income Statement £ £    
           
           
             
             
           
           
           
           
           
             
           
             
           
             
           
           
           
           
           
           
      EOYA        
           
             
           
               
      Balance Sheet £ £ £