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From
the trial balance below:
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Identify each item using a letter:
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"g"
if the item is needed for gross profit
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"e" if the item
is an expense
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"ca" if the
item is an current asset
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"fa" if the
item is a fixed asset
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"cl" if the
item is a current liability
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"fl" if the
item is a fixed liability
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"c" if the item
affects capital
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"r" if the item
is a revenue
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"d"
if the item is calculated on prior to entry
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Use ADD for
"allowance for doubtful debts".
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"ADD
increase/decrease" in the income statement.
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"Less ADD" in
the balance sheet.
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Q1)
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ID
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Trial Balance (TB)
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DR
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CR
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Computers
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£6,700
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Cash
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£3,400
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Returns
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£890
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£450
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Capital
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£232,740
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Salaries
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£45,800
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Drawings
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£1,200
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Sales
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£247,000
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Opening Inventory
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£8,700
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Bad Debts
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£1,200
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Carriage In
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£2,300
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Accounts Payable
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£15,600
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Carriage Out
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£1,300
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Accounts Receivable
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£17,800
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Rates
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£3,000
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Loan
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£45,000
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Commissions
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£23,000
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Buildings
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£760,000
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Mortgage
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£450,000
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Purchases
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£78,500
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Allowance for doubtful debts
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£1,300
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Bank
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£78,500
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Elecricity
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£5,800
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End of Year
Adjustments (EOYA):
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Closing Inventory
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£6,300
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Allowance for doubtful
debts rate is
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8%
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of debtors
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Income Statement
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£
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£
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EOYA
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Balance Sheet
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£
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£
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£
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