|
|
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 data used in a calculation
|
|
|
|
|
|
|
|
|
Then complete the income
statement.
|
|
|
|
|
|
|
|
|
Enter all items in the
order given in the trial balance and EOYA
|
|
|
|
|
|
|
Use ADD as an
abreviation for "allowance for doubtful debts".
|
|
|
|
|
|
|
Income statement
depreciation: "*asset name* depreciation".
|
|
|
|
|
|
|
Balance Sheet
description: "less accumulated depreciation".
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1)
|
|
|
|
|
|
|
|
|
|
ID
|
Trial Balance (TB)
|
DR
|
CR
|
|
|
|
|
|
|
|
Opening Inventory
|
£3,600
|
|
|
|
|
|
|
|
|
Returns
|
£2,700
|
£4,800
|
|
|
|
|
|
|
|
Sales
|
|
£325,000
|
|
|
|
|
|
|
|
Cash
|
£3,400
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
£17,300
|
|
|
|
|
|
|
|
Capital
|
|
£179,050
|
|
|
|
|
|
|
|
Accounts Receivable
|
£23,500
|
|
|
|
|
|
|
|
|
Allowance for Doubtful Debts
|
|
£500
|
|
|
|
|
|
|
|
Commissions
|
|
£10,200
|
|
|
|
|
|
|
|
Buildings
|
£650,000
|
|
|
|
|
|
|
|
|
Discounts Received
|
|
£2,100
|
|
|
|
|
|
|
|
Discounts Allowed
|
£1,300
|
|
|
|
|
|
|
|
|
Acc Depreciation Buildings
|
|
£32,500
|
|
|
|
|
|
|
|
Machinery
|
£95,000
|
|
|
|
|
|
|
|
|
Acc Depreciation Machinery
|
|
£8,000
|
|
|
|
|
|
|
|
Carriage Out
|
£4,600
|
|
|
|
|
|
|
|
|
Bank
|
£14,500
|
|
|
|
|
|
|
|
|
Rent
|
|
£8,000
|
|
|
|
|
|
|
|
Purchases
|
£125,000
|
|
|
|
|
|
|
|
|
Bad Debts
|
£370
|
|
|
|
|
|
|
|
|
Loan (Repay next year)
|
|
£30,000
|
|
|
|
|
|
|
|
Drawings
|
£2,300
|
|
|
|
|
|
|
|
|
Mortgage
|
|
£350,000
|
|
|
|
|
|
|
|
Insurance
|
£3,400
|
|
|
|
|
|
|
|
|
Carriage In
|
£780
|
|
|
|
|
|
|
|
|
Wages
|
£37,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End
of Year Adjustments:
|
|
|
|
|
|
|
|
|
Closing Inventory
|
7400
|
|
|
|
|
|
|
|
Allowance for Doubtful
Debts rate
|
5%
|
of debtors
|
|
|
|
|
|
|
Depreciation
|
Method:
|
|
|
|
|
|
|
|
3%
|
|
straight line
|
|
|
|
|
|
|
|
5%
|
|
reducing
balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EOYA Expenses (use EOYA order)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
£
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|