|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Then complete the income
statement.
|
|
|
|
|
|
Enter all items in the
order given in the trial balance and EOYA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1)
|
|
|
|
|
|
|
|
|
ID
|
Trial Balance (TB)
|
DR
|
CR
|
|
|
|
|
|
Opening Inventory
|
£3,500
|
|
|
|
|
|
|
Returns
|
£3,200
|
£4,500
|
|
|
|
|
|
Sales
|
|
£156,000
|
|
|
|
|
|
Cash
|
£7,500
|
|
|
|
|
|
|
Accounts Payable
|
|
£8,400
|
|
|
|
|
|
Capital
|
|
£115,190
|
|
|
|
|
|
Accounts Receivable
|
£14,600
|
|
|
|
|
|
|
Commissions
|
|
£14,700
|
|
|
|
|
|
Buildings
|
£460,000
|
|
|
|
|
|
|
Machinery
|
£60,000
|
|
|
|
|
|
|
Carriage Out
|
£2,700
|
|
|
|
|
|
|
Bank
|
£17,800
|
|
|
|
|
|
|
Rent
|
|
£12,000
|
|
|
|
|
|
Purchases
|
£47,000
|
|
|
|
|
|
|
Bad Debts
|
£890
|
|
|
|
|
|
|
Loan (Repay next year)
|
|
£30,000
|
|
|
|
|
|
Drawings
|
£2,300
|
|
|
|
|
|
|
Mortgage
|
|
£340,000
|
|
|
|
|
|
Insurance
|
£3,400
|
|
|
|
|
|
|
Carriage In
|
£1,900
|
|
|
|
|
|
|
Wages
|
£56,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Year
Adjustments:
|
|
|
|
|
|
Closing Inventory
|
6400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|