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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:

  1. Prepare the closing entries (use narration for every journal entry)
  2. Prepare the trading account
  3. Prepare profit and loss account
  4. Prepare Capital account (Hint: transfer drawings and net profit to the capital account)
  5. Highlight the gross profit and net profit figures
  6. 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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