Question
Task 3 Background You are working with Complete Business Services and handling one of the clients named Fantastic Textiles Ltd . You have been given
Task 3
Background
You are working with Complete Business Services and handling one of the clients named Fantastic Textiles Ltd. You have been given the following trial balance from the client.
Fantastic Textiles Ltd | ||
Trial Balance | ||
as at 30 June 2020 | ||
Account | DR $ | CR $ |
Bank | 113,510.00 |
|
Accounts Receivable | 55,000.00 |
|
GST Collected |
| 6,500.00 |
Sales |
| 389,000.00 |
Sales Returns | 1,200.00 |
|
Service & Repairs Fees Income |
| 98,700.00 |
Discount Allowed | 400.00 |
|
Freight Outwards Paid | 3,550.00 |
|
Accounts Payable |
| 56,000.00 |
GST Paid | 540.00 |
|
Discount Received |
| 780.00 |
Freight Inward Paid | 1,250.00 |
|
Inventory | 55,000.00 |
|
Cost of Goods Sold | 225,000.00 |
|
Shop Tools | 45,000.00 |
|
Accumulated Depreciation - Shop Tools |
| 12,000.00 |
Furniture/Fixtures & Fittings | 45,000.00 |
|
Accumulated Depreciation - Furniture/Fixtures & Fittings |
| 17,000.00 |
Office Equipment | 35,000.00 |
|
Accumulated Depreciation - Office Equipment |
| 14,000.00 |
Wages | 95,000.00 |
|
PAYG |
| 12,000.00 |
Wages Payable |
| 5,500.00 |
Electricity | 24,580.00 |
|
Advertising | 35,000.00 |
|
Rent | 21,150.00 |
|
Interest on Short-Term Deposit |
| 1,550.00 |
Loan |
| 57,000.00 |
Capital |
| 110,000.00 |
Drawings | 23,500.00 |
|
Petty Cash | 350.00 |
|
Totals | 780,030.00 | 780,030.00 |
Complete the following:
- Prepare the closing entries (use narration for every journal entry)
- Prepare the trading account
- Prepare profit and loss account
- Prepare Capital account (Hint: transfer drawings and net profit to the capital account)
- Highlight the gross profit and net profit figures
- Prepare a trial balance post-closing the entries and preparing new capital account balance. The trial balance needs to be balanced in terms of debit and credits. You need to Review and check the trial balance ensuring any errors are corrected.
Note: The following templates have been provided to you as being used by this client into their manual accounting system. The client is using uniform templates to maintain their accounts as a part of their organisational Policies and Procedures.
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