Macaroni's trial balance on 31st December, 2007 is as follows: Account Dr. (in $) Cr. (in $) Share capital - $1 ordinary shares 10
Macaroni's trial balance on 31st December, 2007 is as follows: Account Dr. (in $) Cr. (in $) Share capital - $1 ordinary shares 10 000 Retained earnings 19 000 Purchases 61 000 Revenues Sales returns 100 000 2000 Purchases returns 4 000 Accounts receivables 20 800 Allowance for doubtful debts 800 Accounts payables 7 000 Land and buildings (at cost) 40 000 Plant (at cost) 50 000 Plant (accumulated depreciation to 1 January 2007) 22 000 Loan notes (10% p.a. interest) 30 000 Inventory (1 January 2007 - opening) 15 000 Administration expenses 17 000 Selling expenses 4 500 Other expenses Bank Provision for guarantees Suspense account TOTAL "Of which land is $5000. 1 500 10 000 1000 8000 211 800 211 800 1. Regarding the provisions the following is known (these amounts are included under cost of sales): a) at the end of the reporting period the guarantee obligations were measured to be $1500. DEBIT CREDIT: x Amount x $ b) There is a contingent liability that might arise in the future amounts to $700. DEBIT CREDIT: x Amount x $ 2.5,000 new shares were issued during the year at $1.60 per share. The proceeds have been credited to the suspense account ($8,000).
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