The following trial balance and additional information covers all the new adjustments featured in this chapter. The income statement and balance sheet constructed from this trial balance are accompanied by explanatory notes which should be viewed carefully.
Ian Yates Trial balance as at 31 December 2018
|
£ |
£ |
|
|
Opening inventory |
12,560 |
|
|
Sales |
328,000 |
|
|
Purchases |
185,000 |
|
|
General expenses |
15,755 |
|
|
Salaries and wages |
51,010 |
|
|
Electrical and power expenses |
7,590 |
|
|
Insurance |
2,310 |
|
|
Rent |
6,745 |
|
|
Bad debts |
690 |
|
|
Plant |
110,000 |
|
|
Equipment |
32,000 |
|
|
Provision for depreciation: Plant |
22,000 |
|
|
Provision for depreciation: Equipment |
8,000 |
|
|
Provision for bad debts |
220 |
|
|
Trade receivables |
8,760 |
|
|
Trade payables |
11,120 |
|
|
Bank |
5,420 |
|
|
Capital |
88,000 |
|
|
Drawings |
19,500 |
|
|
457,340 |
457,340 |
Additional information:
1Inventory in trade at year end was valued at £15,105.
2The following expenses were accrued as at the year end:
aWages and salaries: £2,780 outstanding
bElectrical and power expenses: £310 outstanding.
3Insurance prepaid at the year end amounted to £160.
4The allowance for doubtful debts is to be maintained at 5% of outstanding receivables at the year end.
5Depreciation is to be provided for as follows:
aPlant: 20% straight-line method
bEquipment: 20% reducing balance method.