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    
    Loan   £25,000    
    Opening Inventory £15,600      
    Allowance for doubtful debts   £2,500    
    Premises £670,000      
    Salaries £130,000      
    Cash £7,800      
    Accounts Receivable £15,400      
    Loan Interest £1,750      
    Purchases £45,600      
    Capital   £248,900    
    Accounts Payable   £9,800    
    Returns £900 £1,200    
    Mortgage   £350,000    
    Commissions £1,450      
    Bank £24,500      
    Rent Received   £16,200    
    Drawings £3,400      
    Carriage Out £2,400      
    Rates £1,800      
    Sales   £350,000    
    Bad Debts £900      
    Vehicles £80,000      
    Carriage In £2,100      
           
               
    End of Year Adjustments (EOYA):    
    Closing Inventory £12,400      
    Allowance for doubtful debts rate is 6% 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        
    Carriage Out £2,800          
    Purchases £32,000          
    Returns £1,500 £2,100        
    Loan (Repay next year)   £15,000        
    Sales   £240,800        
    Buildings £780,000          
    Accounts Receivable £17,400          
    Commissions £3,400          
    Opening Inventory £7,400          
    Carriage In £700          
    Allowance for doubtful debts   £2,500        
    Machinery £78,000          
    Cash £3,400          
    Accounts Payable   £14,900        
    Loan Interest £900          
    Bad Debts £1,200          
    Insurance £1,600          
    Commissions   £24,000        
    Drawings £3,400          
    Salaries £80,700          
    Capital   £462,700        
    Mortgage   £250,000        
    Bank   £2,400        
               
                   
    End of Year Adjustments (EOYA):        
    Closing Inventory £8,900          
    Allowance for doubtful debts rate is 8% of debtors        
                   
      Income Statement £ £        
               
               
                 
                 
               
               
               
               
               
                 
               
                 
               
      EOYA            
               
                 
                 
               
               
               
               
               
               
                 
               
                   
      Balance Sheet £ £ £