Trial Balance Exercise 6 Walt and Mike are the owners of the Dharma Initiative Ltd., a business that sells books on religion, philosophy and spirituality. The following is their trial balance for the 6- month period that ended on 30 th June 2014: Accounts Sales Bad debt Capital Inventory Drawings Promotional expense Debtors Stationery expenses Computer Equipments Acc. Depreciation – C.E. Cost of Goods Sold Sales assistant’s wages Sales Return General expenses Bank Overdraft Interest expense Bank Loan Custom Duty Creditor Consultation revenue Prepaid rent revenue Building Acc. Depreciation - Building $ 550 32830 12040 3080 37400 3810 76900 42000 7400 1200 1790 960 640 49000 $ 74800 87900 13700 6330 32500 20700 2670 7000 24000 Additional information 1) The business earned monthly rent revenue of $1000 during the 6-month period. 2) Utility expense incurred is $4000, which remains unpaid. 3) The business earned another $1330 of consultation revenue, which is yet to be received. 4) Computer equipments are depreciated under the RB method at 30% p.a. The building is depreciated under SL method with a scrap value of $1000 and useful life of 40 years. Prepare the P&L statement and balance sheet for the partners.

Trial Balance Tutorial Exercise 6

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Page 1: Trial Balance Tutorial Exercise 6

Trial Balance Exercise 6

Walt and Mike are the owners of the Dharma Initiative Ltd., a business that sells books on religion, philosophy and spirituality. The following is their trial balance for the 6-month period that ended on 30th June 2014:

AccountsSalesBad debtCapitalInventoryDrawingsPromotional expenseDebtorsStationery expensesComputer EquipmentsAcc. Depreciation – C.E.Cost of Goods SoldSales assistant’s wages Sales ReturnGeneral expensesBank OverdraftInterest expenseBank LoanCustom DutyCreditorConsultation revenuePrepaid rent revenueBuilding Acc. Depreciation - Building

550

32830120403080

374003810

76900

42000740012001790

960

640

49000

$74800

87900

13700

6330

32500

2070026707000

24000

Additional information1) The business earned monthly rent revenue of $1000 during the 6-month period.2) Utility expense incurred is $4000, which remains unpaid. 3) The business earned another $1330 of consultation revenue, which is yet to be received.4) Computer equipments are depreciated under the RB method at 30% p.a. The building is depreciated under SL method with a scrap value of $1000 and useful life of 40 years.

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