TRIAL BALANCE

Dr Cr

Sale 138,078
Purchase 82,350
Carriage 5,144
Drawings 7,800
Rent and Issurance paid during the period 6,622
Postage and Stationary 3,001
Advertising 1,330
Salary and Wage 26,420
Irrecoverable debt 877
Allowance for receivable at 1 June 20X5 130
Receivables 12,120
Payables 6,471
Cash on hand 177
Cash at bank 1,002
Inventory at 1 June 20X5 11,927
Equipment at cost 58,000
Accummulated Depreciation at 1 June 20X5 19,000
Capital 53,091
216,770 216,770

31 May 20X6
1 Accrued rental fee 210
2 Prepaid Insurance 880
3 Carriage inward expenses 2,211
4 Allowance for doubtful debt exp 40
5 Closing inventory 13,551
6 Depreciation 15%

Working 1: Cost of sales

Opening 11,927
Purchase 82,350
Carriage inward on purchase 2,211
Ending balance - 13,551
COS 82,937

Working 2: Carriage outward expenses (selling expense)

Carriage cost incurred 5,144

Carriage inward on purchase recorded as cost of inventory - 2,211

Carriage outward expenses 2,933

Working 3: Rental and insuarnce
Rent 210
Insurance - 880
Ending bal' - 670

Rent and insurance paid in the period + 6,622

Opening bal' - -
Rent
Insurance
Expenses 5,952

Working 4: Accummulated depreciation

Cost of PPE 58,000
Depreciation rate per annum 15%
Depreciation expenses 8,700

Accumulated depreciation-opending balance 19,000

Depreciation expenses 8,700
Accumulated depreciation- ending balance 27,700

Carrying amount 30,300

Working 5: Equity
Opening capital 53,091
Drawings - 7,800
Profit/(loss) 5,888
51,179
Working 6: Cash
Cash on hand 177
Cash at bank 1,002
Total cash 1,179

Working 7: Allowance for receivable

Opening allowance 130
Increase 40
Ending allowance 170
=> Statement of P&L

=> Statement of P&L

 Dr rental expenses/Cr Closing accrued rental fee
Dr closing prepaid insurance/ Dr Expense

Dr rental and insurance expenses/Cr Cash

=> Statement of P&L

=> Statement of P&L

=> Statement of P&L

 TRIAL BALANCE

Opening bal' Incurred

Dr Cr Dr
Property, plant and equipment 58,000 - -
Accumulated depreciation - 19,000 -
Prepaid expenses (prepaid insurance) - - -
Inventory 11,927 - 84,561
Trade receivables
Allowance for receivables - 130 -
Cash and cash equivalent
Capital 53,091
Drawings 7,800
Retained earnings
Accrued expenses (accrued rental fee) - - -
Trade payables
Revenue
COS 82,937
Carriage outward cost 2,933
Rent and Issurance expenses 5,952
Postage and Stationary 3,001
Advertising 1,330
Salary and Wage 26,420
Irrecoverable debt exp 877
Allowance for doubtful debt exp 40
Depreciation expenses 8,700
Profit 5,888
230,439

There is no transaction incurred and opening balance for some items, as a result the trial balance is not balanced
TRIAL BALANCE

Incurred Closing bal' OB CB

Cr Dr Cr
- 58,000 - 58,000 58,000
8,700 - 27,700 (19,000) (27,700)
5,952 880 - - 880
82,937 13,551 - 11,927 13,551
12,120 - - 12,120
40 - 170 (130) (170)
1,179 - - 1,179
- 53,091 (53,091) (53,091)
7,800 - - 7,800
5,888 - 5,888 - (5,888)
- - 210 - (210)
6,471 - (6,471)
138,078 - -
- -
- -
- -
- -
- -
- -
- -
- -
- - -
- -
241,595 93,530 93,530 (2,294) -
(11,156) -

ial balance is not balanced

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
$
Revenue 138,078
COS 82,937 W1
Gross profit 55,141

Carriage outward cost - 2,933 W2

Rent and Issurance expenses - 5,952 W3
Postage and Stationary - 3,001
Advertising - 1,330
Salary and Wage - 26,420
Irrecoverable debt exp - 877
Allowance for doubtful debt exp - 40
Depreciation expenses - 8,700 =58,000*15%

Net profit from operating activity 5,888

STATEMENT OF FINANCIAL POSITION AT 31 MAY 20X6

Non current assets 30,300

Property, plant and equipment 58,000
Accumulated depreciation - 27,700 W4

Current assets 27,560

Prepaid expenses (prepaid insurance) 880
Inventory 13,551 W1
Trade receivables 12,120
Allowance for receivables - 170 W7
Cash and cash equivalent 1,179 W6

Total assets 57,860

Equity 51,179
Capital 53,091
Drawings - 7,800
Retained earnings 5,888 Income statement

Liablitiy 6,681

Non-current liability -

Current liability 6,681

Accrued expenses (accrued rental fee) 210
Trade payables 6,471

Total resources 57,860

Balancing checking -
TRIAL BALANCES
Dr Cr
Sales  54,000
Purchases  21,000
Inventory  9,500
Cash  27,250
Receivables 12,750 ????
Motor vehicle 7,500
Payables    5,500
Capital  18,500

78,000 78,000
65,250