Self-test You are presented with a trial balance at 31 October 2009.

Idea & Co. trial balance at 31 October 2009 Packing expenses 525 General expenses 490 Electricity expenses 2,416 Insurance 205 Rent 3,500 Rates 906 Salaries and wages 15,689 Motor expenses 1,416 Sales 88,300 Purchases 51,150 Returns inwards 200 Returns outwards 350 Stock 1 November 2008 15,690 Debtors 16,314 Creditors 10,170 Fixtures and fittings 6,300 Drawings 10,950 Capital 29,256 Cash in hand 150 Cash at bank 2,175 128,076 128,076 After its preparation you are told that certain adjustments are to be made. The following is the list:

Expenses prepaid:

Insurance 25 Rates 256 Expenses owing:

Rent 700 General expenses 25 Motor expenses 310 Electricity expenses 104 Stock at 31 October 2009 amounts to £17,170.

You are required to produce the revised trial balance in preparation of the profit and loss account and balance sheet for the financial year. In so doing you will need to create an account for accruals and another for prepayments.

Note: as the preparation of the financial statements is only dealt with in Chapters 20 and 22, you are required to keep your adjusted trial balance until you have completed your studies of those two chapters.