Trial Balance Adjustments Adjusted Trial Balance Profit and Loss
Account Debit Credit Debit Credit Debit Credit Debit Credit
Trial balance Adjustments Adjusted TB Income statement
Inventories at 1 April 20X7 75,000 91000 75000 91,000
Purchases 465,000 465000 0
Prepaid insurance 7000 7,000
Land and Buildings Cost 600,000 600,000
Plant and Equipment Cost 340,000 340,000
Land and Buildings Accumulated
Depreciation 96,000 8000 104,000
Plant and Equipment Accumulated
Depreciation 63000 34000 97,000
Prepaid rent 25000 25,000
Trade Receivables 60,000 4800 55,200
Allowance for Receivables 5,000 2240 2,760
Bank 24,000 24,000
Equity Share Capital (£1 shares) 400,000 400,000
Share Premium 100,000 100,000
Bank Loan 200,000 200,000
Retained Earnings 61,000 61,000
Equity Dividends Paid 15,000 15,000
Trade Payables 54000 54000
Advance Deposits from Customers 6000 6000
Interest payable 4000 4,000
Income tax payable 10000 10,000
Sales 1,150,000 1,150,000 1,150,000
COGS 574000 91000 483000 483000
Distribution Costs 220,000 220000 220000
Administrative Expenses 340,000 12800 34240 318560 318560
Irrecoverable Debts Expense 36,000 36000 36000
Loan interest paid 8,000 4000 12000 12000
Income tax expense 10000 10000 10000
£ 2,159,000 £ 2,159,000 £ 726,040 £ 726,040 £ 2,212,760 £ 2,212,760 £ 1,079,560 £ 1,150,000
Net income £ 70,440
Balance sheet
Debit Credit
Balance sheet
91,000
7,000
600,000
340,000
104,000
97,000
25,000
55,200
2,760
24,000
400,000
100,000
200,000
£ 131,440
15,000
54000
6000
4,000
10,000
£ 1,133,200 £ 1,133,200
