800 521 100 FIN301 - Refresher Examples Q1 Prepare financial statements from the following trial balance of Tiny Tim as at 31 December Debit Credit Capital Tiny Tim 14,000 Office equipment 600 Shop fitting 1.400 Inventory at 1 January 7.400 Bank 3,500 Receivables 6,700 Payables 2.880 Salaries 1,306 Advertising Rent and rates Electricity Discount allowed 80 Discount received 90 Purchases 10.060 Revenue 15,985 Postage and telephone 70 Sundry expenses 238 Stationery 140 Carriage outwards 40 32.955 32.955 The following additional information is provided. (a)Closing inventory (31December) 8,500 (b)Rates paid in advance 30. (c) Electricity account outstanding 22 (d) Stock of stationery at 31 December 14. (e) Provide for depreciation on office equipment at 10 per cent per annum, and on shop fittings at 5 per cent per annum. (Create a provision for bad debts at a rate of 2 per cent on total debtors. Required Draw up financial statements at 31 December from the trial balance after taking account of the items listed in (a) - (b), above