|
|
c
|
affects capital
|
|
|
|
|
|
|
|
fa
|
fixed asset
|
|
|
|
|
|
|
|
ca
|
current asset
|
|
|
|
|
|
|
|
cl
|
current liability
|
|
|
|
|
|
|
|
fl
|
fixed liability
|
|
|
|
|
|
|
|
e
|
expense
|
|
|
|
|
|
|
|
pe
|
expense with prepaid part
|
|
|
|
|
|
|
|
ae
|
expense with accrued part
|
|
|
|
|
|
|
|
pr
|
revenue with prepaid part
|
|
|
|
|
|
|
|
ar
|
accrued revenue
|
|
|
|
|
|
|
|
g
|
required for gross profit
|
|
|
|
|
|
|
|
d
|
data to be calculated upon.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ID
|
Trial Balance (TB)
|
DR
|
CR
|
|
|
|
|
|
|
Purchases and Sales
|
£54,600
|
£563,000
|
|
|
|
|
|
|
Premises
|
£450,000
|
|
|
|
|
|
|
|
Accumulated depreciation (Premises)
|
|
£27,000
|
|
|
|
|
|
|
Carriage Out
|
£1,450
|
|
|
|
|
|
|
|
Bank
|
£135,000
|
|
|
|
|
|
|
|
Discounts Received
|
|
£3,160
|
|
|
|
|
|
|
Drawings
|
£3,200
|
|
|
|
|
|
|
|
Accounts Receivable
|
£23,500
|
|
|
|
|
|
|
|
Allowance for doubtful debts
|
|
£1,200
|
|
|
|
|
|
|
Vehicles
|
£135,000
|
|
|
|
|
|
|
|
Accumulated Depreciation (Vehicles)
|
|
£24,500
|
|
|
|
|
|
|
Cash
|
£6,590
|
|
|
|
|
|
|
|
Insurance
|
£2,590
|
|
|
|
|
|
|
|
Wages
|
£125,900
|
|
|
|
|
|
|
|
Equipment
|
£96,700
|
|
|
|
|
|
|
|
Accumulated depreciation (Equip)
|
|
£12,500
|
|
|
|
|
|
|
Rent Received
|
|
£35,000
|
|
|
|
|
|
|
Loan Interest
|
|
|
|
|
|
|
|
|
Carriage In
|
£2,400
|
|
|
|
|
|
|
|
Bad Debts
|
£1,600
|
|
|
|
|
|
|
|
Loan (repay in 5 years)
|
|
£50,000
|
|
|
|
|
|
|
Capital
|
|
£331,270
|
|
|
|
|
|
|
Returns
|
£390
|
£1,340
|
|
|
|
|
|
|
Rates
|
£1,800
|
|
|
|
|
|
|
|
Opening Inventory
|
9500
|
|
|
|
|
|
|
|
Motor Expenses
|
£6,400
|
|
|
|
|
|
|
|
Accounts Payable
|
|
£12,500
|
|
|
|
|
|
|
Discounts allowed
|
£350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End
of Year Adjustments:
|
|
|
|
|
|
|
|
Closing Inventory
|
9850
|
|
|
|
|
|
|
Allowance for Doubtful
Debts rate
|
8%
|
of debtors
|
|
|
|
|
|
Owner took extra drawings
from stock
|
£800
|
|
|
|
|
|
|
A new customer has gone
bankrupt and his account receivable
|
|
|
|
|
|
|
now must be written off.
The amount he owed was:
|
|
£1,300.00
|
|
|
|
|
|
Depreciation
|
Method:
|
|
|
|
|
|
|
4%
|
|
straight
line
|
|
|
|
|
|
12%
|
|
reducing
balance
|
|
|
|
|
|
2%
|
|
reducing
balance
|
|
|
|
|
|
An accrual is required
for commissions receivable:
|
£800
|
|
|
|
|
|
|
|
Rent Received is pre paid by
|
£1,400
|
|
|
|
|
|
|
|
Insurance is prepaid
|
£290
|
|
|
|
|
|
|
3
|
months owing on loan interest at
|
12%
|
of loan p.a.
|
|
|
|
|
|
|
Motor Expenses are prepaid by
|
£450
|
|
|
|
|
|
|
|
Accrual required on Wages of
|
£1,750
|
|
|
|
|
|
|
|
Rates are owing
|
£290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EOYA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Expenses (use TB order)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EOYA Expenses (use EOYA order)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|