Task 1 (4.1.Produce a trial balance from a given set of ledger accounts)
A list of balances has been extracted from the ledgers. Produce a trial balance from this list of balances on page 3.
Dr £ Cr £
£ £ £
Accruals 120
Capital 9,694
Cash at Bank 1092
Cash in Hand 66
Creditors 3,617
Debtors 2,542
Drawings 4,006
Electricity 379
Freehold Shop 7,605
Irrecoverable (Bad) Debt 200
Payroll – Wages and Salaries 3,704
Prepayment 200
Purchases 9,856
Rates 1,490
Sales 22,509
Stock 2,700
Sundry Expenses 2,010
Total
Task 2
Balance the trail Balance and open a suspense account if required.
Task 3 (AC 4.3)
Explain the purpose of a suspense account.
Trial Balance Adjustments Final Trial Balance
Dr £ Cr £ Dr £ Cr £ Dr £ Cr £
£ £
Accruals
Capital
Cash at Bank
Cash in Hand
Creditors
Debtors
Drawings
Electricity
Freehold Shop
Irrecoverable (Bad) Debt
Payroll – Wages and Salaries
Prepayment
Purchases
Rates
Sales
Stock
Sundry Expenses
Task 4 (AC 4.2)
Evaluate the process of producing the trial balance and checking it for accuracy.
Task 5 (2.4 Produce Journals for non-routine transactions
2.5 Produce journals for the corrections of errors not disclosed by a trial balance)
The following errors and adjustments required were discovered after reviewing the trial balance.
An accrual for Payroll has been calculated for £84 respect of unpaid wages for last week in February 20X9 was paid on 7 March 20X9
Rates include a payment of £315 made on 10 April 20X8 in respect of the year to 31 March 20X9.
Irrecoverable Debts of £275 to be written off.
Purchases of £540 was posted in Sundry Expenses in error.
Owner took goods of £120 from business for private use.
Sundry expenses of £320 pound was under posted as £230 in sundry expenses.
Complete the following Journals
JOURNALS
Account Name Amount £ Debit Credit
Account Name Amount £ Debit Credit
Account Name Amount £ Debit Credit
Account Name Amount £ Debit Credit
Account Name Amount £ Debit Credit
Account Name Amount £ Debit Credit
Task 6
Post the journals in task 5 to the adjustment column in the extended trial balance on page 3 and accurately balance it off.
Task 7
Extend the trial balance to produce the final trial balance and accurately balance it off. This will enable the final accounts to be produced from final trial balance.
