Trial Balance Exercise 3

Julius and Crassus run a partnership business that sells tiramisu cakes. The following is their trial balance for the 12-month period ended on 31st December 2015:

Pompeii’s Best TiramisusTrial Balance for the year ended 31st December 2015

AccountsCapitalDebtorsElectricity ExpensesSalesSales ReturnAdministrative ExpensesBuildingInterest expenseBank LoanFreight inwardsCreditorSales Delivery expensesAccrued Salary expenseBad debtInventoryDrawingsCost of Goods SoldShop Staffs’ Salary CashLandPrepaid Advertising ExpenseAccrued Sales Delivery Exp

$

370008510

33001790

154000960

2740

4500

7804650015080474902400013280250003600

$150400

110870

97240

26040

2480

1500

Additional information1) The business paid $1480 of salary expenses owed.2) It incurred $2800 of advertising expense during the year.3) It has incurred another $1500 of sales delivery expense, which is still unpaid.4) The business pays $6500 for future consultation services.

Prepare the P&L statement and balance sheet for the partners.