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Please answer in detail, so I can have clear understanding Q.5. Business Services Ltd. was set up on January 2013. Its trial balance on January
Please answer in detail, so I can have clear understanding
Q.5. Business Services Ltd. was set up on January 2013. Its trial balance on January 31, 2013 was as follows [10] Business Services Ltd. Trial Balance, January 31, 2013 Amount in Rs. Credit Debit 15000 12000 2140 16-40 630 3600 ELE Particulars Buildings Office squipment Office supplies Trade receivables (debtors) Cash Prepaid rent Trade payables (creditors) Unearned revenue Share capital Dividends Revenue from services (sales) Salaries expense Electricity expense Total 1020 1600 20000 16870 SHELL 3100 380 139490 39490 The following additional information is available. 1. The building is expected to be useful for 10 years and the office equipment has an estimated useful life of four years. None of these assets are expected to have any salvage value 2. The inventory of office supplies on January 31, 2013 is Rs.970 3. Services for Rs 900 were provided to customers in January and bills have been raised 4. Services for Rs. 720 were provided to customers who had made full advance payments 5. Salaries of stal for the second fortnight totaling Rs. 3100 have not been paid 6. The telephone company sent a bill for Rs. 480 for January after the close of the month's transactions 7. The company paid six months' rent as advance on January 1, 2013 You are required to 1. Prepare adjusting entries and post them to the Taccounts (Ledgers) 2. Prepare an adjusted trial balance and final accountsStep by Step Solution
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