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Trial Balance Questions

The document presents trial balances for two businesses, Rainbow Services and Golden Traders, as of December 31, 2024, detailing their account titles and balances. It includes additional year-end adjustments for prepaid insurance, accrued salaries, and depreciation calculations for non-current assets. The trial balances for both businesses are balanced, with total debits equaling total credits.

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Ahmed Eid Ahmed
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1K views3 pages

Trial Balance Questions

The document presents trial balances for two businesses, Rainbow Services and Golden Traders, as of December 31, 2024, detailing their account titles and balances. It includes additional year-end adjustments for prepaid insurance, accrued salaries, and depreciation calculations for non-current assets. The trial balances for both businesses are balanced, with total debits equaling total credits.

Uploaded by

Ahmed Eid Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Accounting Trial Balance and Year-End Adjustments

Question 1: Trial Balance - Service Business (Rainbow Services)

Trial Balance as at 31 December 2024

Account Title Debit ($) Credit ($)

------------------------------------------------------- ----------

Cash 8,000

Accounts Receivable 5,000

Prepaid Insurance 1,200

Equipment 20,000

Vehicle 15,000

Furniture and Fittings 5,000

Accumulated Depreciation - Equipment 4,000

Accumulated Depreciation - Vehicle 3,000

Accumulated Depreciation - Furniture 1,000

Accounts Payable 3,500

Wages Payable 0

Capital 20,000

Service Revenue 25,000

Rent Expense 3,000

Salaries Expense 6,000

Utilities Expense 1,300

Insurance Expense 0

Depreciation Expense 0

Totals 64,500 64,500

Additional Information (Year-End Adjustments):

1. Prepaid Insurance: $400 has expired.

2. Accrued Salaries: $1,000 unpaid at year-end.

3. Depreciation on Non-Current Assets:


Accounting Trial Balance and Year-End Adjustments

- Equipment: Straight-line, 10-year life, no residual value.

- Vehicle: Reducing balance, 20% per annum.

- Furniture: Straight-line, 5-year life, $500 residual value.

Question 2: Trial Balance - Trading Business (Golden Traders)

Trial Balance as at 31 December 2024

Account Title Debit ($) Credit ($)

------------------------------------------------------- ----------

Cash 9,000

Bank 6,500

Accounts Receivable 7,200

Inventory (Opening Stock) 12,000

Purchases 40,000

Carriage Inwards 1,800

Rent Expense 4,500

Salaries Expense 8,000

Advertising Expense 2,000

Prepaid Insurance 1,000

Furniture and Fittings 5,000

Motor Van 20,000

Accumulated Depreciation - Van 4,000

Accumulated Depreciation - Furniture 1,000

Accounts Payable 5,800

Loan Payable 10,000

Capital 30,000

Sales 72,000

Sales Returns 1,500

Purchase Returns 1,200


Accounting Trial Balance and Year-End Adjustments

Drawings 3,000

Insurance Expense 0

Depreciation Expense 0

Totals 121,500 121,500

Additional Information (Year-End Adjustments):

1. Closing Inventory: $10,500 at cost.

2. Prepaid Insurance: $300 is prepaid.

3. Accrued Salaries: $1,200 unpaid at year-end.

4. Depreciation on Non-Current Assets:

- Motor Van: Reducing balance, 25% per annum.

- Furniture: Straight-line, 5-year life, no residual value.

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