Accounting Problem. Unadjusted Trial Balance to Adjusted Trial Balance

Posted on 2013-11-22 13:31:00 in Accounting by KISSCAKE

Ok so I placed a,b, & d (d=$5,000 I believe) in the debit columns - I do not know where to place it in the credit to balance the totals. I placed "c" in the credit column, I do not know what descriptor to use in the debit column to balance it out. I am a total lost with where "e" goes. I have not touched on 1 or 2 bc I cant get past the first portion just yet. Guidance and assistance would be greatly appreciated.





Allow for:

a. Wages accrued $5,200.00

b. Rates prepaid, $2,000.00

c. Increase provision for bad debts by $1,000

d. Provide 10% depreciation on plant and machinery

e. Value of stock at 31 March 2013, $50,000



You are required to prepare:

(1) Trading account and statement of comprehensive income for the year ending 31 March 2013.

(2) Statement of financial position as at that date.



March 2013, was as follows:



Capital 95,720

Drawings 12,500

Plant and machinery 50,000

Purchases 181,170

Purchases returns 1,180

Wages 73,780

Sundry debtors 86,560

Sundry creditors 50,960

Discount allowed 780

Discount received 310

Carriage inwards 1,300

Sales 350,310

Sales Returns 2,970

Office salaries 20,200

Cash at bank 10,280

Cash in hand 3,200

Inventory at beginning of year 30,230

Rent and rates 8,500

Factory Expenses 13,000

Carriage outwards 600

Bad debts written off 2,010

Provision for bad debts 4,000

Sundry Expenses 5,400 0000

502,480 502,480

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