lecture 7 detailed pl bs.pptVIP

PROCESS Go through trial balance for P/L and B/S items Calculate the adjustments (each adjustment has a P/L effect and a B/S effect) Prepare Financial Statements * * 2,100 Motor expenses 1,250 Prov for Dep Office 3,720 Prov for Dep Motor 5,000 Office equipment 12,400 Motor vehicle at cost 15,600 Capital 770 Electricity 56,160 Purchases 1,600 Stock at 1st May 2005 94,480 Sales 15,480 Drawings PL BS BS BS BS BS PL PL PL PL BS 1,800 Admin expenses 1,400 Insurance 1,200 Rent 100 Prov for doubtful debts 9,950 Debtors 1,100 VAT (credit balance) 1,100 Telephone 5,300 Creditors 10,640 Wages 1,950 B