Question

es Ltd as Ltd.) was established on 1 April 2017 to provide various maintenance servic marized bank book of the company for the quarter ended 30 June 2017 is as follows: e in Receipts Payments 50,000 1,200 4,500 Opening of a bank account in the name of as Ltd. Purchase of a vehicle on commencement of the business Supplies Maintenance services Cash Riven for petty office expenses Utility bills (electricity, gas, telephone etc.) Wages and salaries Owner's personal expenses Office rent for the nine months ending 31 Dec 2017 Bank charges 300 250 14,5 900 10 18,200 Total 54,500 Additional Information: 1) On 1 Apr 2017, a machine costing £ 24,000 was purchased for business use. The owner paid the personal bank account in May 2017 fourt from his 2) Supplies costing £ 850 were purchased during the quarter. 3) Unused supplies as at 30 June 2017 amounted to £ 350 4) Payment of utility bills includes refundable deposits of € 20 5) Electricity bill of £ 450 for June 2017 was received in July 2017 6) Vouchers of £250 for petty office expenses were submitted during the quarter. 7) Wages and salaries include payment of supervisor's salary for July 2017 amount to £ 1500 3) A bank advice of £ 500 dated 30 June 2017 for bank charges was received on 4 July 2017 19) Maintenance services for 700 have been rendered during the quarter but the amount due 1 been received 10) Maintenance services against collections of £1,250 will be rendered in the next quarter. 11) as Ltd. adopted the policy of charging depreciation on fixed assets 20% per annum on a sing Depreciation is to be charged from the month of the assets are available for use. l e bus Required: Prepare a Thal Balance area Trial Balance for the quarter ended 30 June 2017 incorporating all the adjustments nece hasis of Accounting (Ledger accounts are not required ace

Answer 1

Credit [£54,500 - £18,200 - £500; Net of bank charges of £500 for Jun 2017 not adjusted in Jun 2017's cash baalnce)] [£300-£250; Net of petty expenses bills submitted] [Services performed but not yet collected] [Out of £850 of supplies purchased, £350 only available on hand] [Supervisor's Jul 2017 salary £1,500 + Rent £900 x (6/12) --> prepaid rent for Jul 2017 thru Dec 2017] £60 [£1,200 x 20% < (3/12) --> Used for 3 months from Apr 2017 thru Jun 2017] Quality Services Ltd (QS Ltd) Adjusted Trial Balance 30 June 2017 Account Titles Debit Cash £35,800 Petty Cash £50 Accounts Receivable £700 Supplies £350 Utilities refundable deposit £20 Prepaid Expenses £2,100 Vehicles £1,200 Accumulated Depreciation - Vehicles Equipment £24,000 Accumulated Depreciation - Equipment Accounts Payable Utilities Payable Unearned Maintenance Service Revenue Owner's Capital Owner's Drawings £390 Maintenance Service Revenue Supplies Expense £500 Wages and Salaries Expense £13,000 Utilities Expense £680 Rent Expense £300 Bank Charges Expense £510 Depreciation Expense Miscellaneous Expense £250 Totals £81,110 £1,200 (£24,000 x 20% < (3/12) --> Used for 3 months from Apr 2017 thru Jun 2017] £200 [For Supplies, £850 - £650] £450 [Electricity Bill for June 2017 received in July 2017] £1,250 (Advance collected for which service will be performed in the next quarter] £74,000 (£50,000 + £24,000; Including payment for equipment in May 2017 (£24,000)] [Cash paid for owner's personal expenses] £3,950 [£4,500 - £700 - £1,250; Including services performed but not yet collected (£700) & net of collected in advance (£1,250)] [£850 - £350; To the extent of used supplies, it is recognized as expense) [£14,500 - £1,500; Net of prepaid salary for supervisor] [£250 + £450 - £20; Net of utilities refundable deposit is recognized as expense] [Net of prepaid rent of £900 x (6/12) = £600 --> £900 - £600 = £300 is recognized as expense] [£10 + £500; Including bank services for Jun 2017] [£60 + £1,200; Depreciation for Vehicles and Equipment as calculated above] [Bills submitted for petty expenses] £81,110 £1,260