Adjustments in ETB

yorkshirelass AAT Student Posts: 17 Dedicated contributor ? ? ?

i am struggling with my figures in the adjustment columns in the extended trial balance

these are the figures i have to work with

a) Carriage inwards is £2211 and carriage utwards is £2933 (does carriage have to included in the adjustments as i cant find any examples in my workbook?)

b) The balance for Rent and rates is £6622, i am told rents are payable 6 months in advance. A payment of £880 made on 30th June 2005 represents rates for july to december 2005

c) A rent demand for £210 for the 3 months ended 30 June 2005 was not received ubtil 1st July 2005

d) Equipment costs is £58000 and is to depreciated at 15% per annum using the straight line method

e) Provision for bad debts is £130 and this is to be increased to £40

f) Stock at close of business was valued at £13,551

this is what i have so far for my adjustments

DR Purchases £2211 (does the carriage inwards have to be addeed onto to the purchases?)

DR £210 Rent and rates

Dr £13551 Closing stock : balance Sheet

Dr £880 Prepayments

Dr £8700 Depreciation

Dr £40 Provision for doubtful debts - adjustment

Cr £2211 Carriage inwards

Cr £40 Provision for bad debts

Cr £8700 Accumulated Depreciation

Cr £13,551 Closing stock : Profit and loss

Cr £210 Accruals

Cr £40 Provision for doubtful Debts adjustment

that gives me totals of £25,592 on both sides, is that right?


  • crispy
    crispy Registered Posts: 465 Dedicated contributor ? ? ?

    a) I don't know if any adjustments would be required but carraige in should be added to purchases in the trading account, carraige out included with the other expenses.

    b) Dr Prepayments 880
    Cr Rent & Rates 880

    c) Dr Rent 210
    Cr Accruals 210

    d) Dr Depreciation Expense 8,700
    Cr Equipment Accum. Depreciation 8,700

    e) Dr Bad & Doubtful Debts Expense 40
    Cr Provision for Doubtful debts (Balance Sheet)40

    I assume the question should read increase provision by 40 and not to 40.

    f) Dr Stock (Balance Sheet) 13,551
    Cr Closing Stock (P&L) 13,551

    Your answer look ok to me :)
Privacy Policy