1. Trial Balance Exercise 1
James Darmody is the owner of Bootlegger Trader, a business that sells alcoholic
beverages. The following is his business’ trial balance at 31st
December 2014:
Trial Balance for the 12 months ended on 31st
December 2014
Accounts
Mortgage loan
Sales
Carriage inwards
Bad Debt
Capital
Inventory
Drawings
Office expense
Debtors
Utility expense
Office Building
Cost of Goods Sold
Sales wages
Sales return
Creditor
Advertising expense
Cash
Office equipment
Interest expense
Prepaid rent revenue
Accrued Interest Revenue
$
1100
900
6950
2400
3000
4760
560
59200
44650
6460
1030
2900
16600
1750
800
$
20050
64000
55800
8400
1810
3000
Additional information occuring on 31st
December
1) The business earned service revenue $1800 but has not received it.
2) It also received $4000 of consultation revenue, although it has not provided any
services so far.
3) It has earned $500 of rent (per month) for the last 6 months.
4) It received $800 of the interest revenue owed from a borrower.
Requirements
1) Adjust the trial balance based on the additional information.
2) Prepare a P&L statement and Balance Sheet based on the adjusted trial balance.

2. Sample Balance Sheet (Vertical Format)
McGarrigle’s Shop of Horror
Balance Sheet as at 31st
December 2013
Owner’s Equity
Capital
Add: Net Profit
Less: Drawings
Total O/E
Represented by:
Current Assets
Cash at Bank
Debtors
Prepaid Rent Expense
Accrued Service Revenue
Inventory
Non – Current Assets
Delivery Vehicles
Less: Acc Depreciation
Furniture
Less: Acc Depreciation
Total Assets
Current Liabilities
Creditors
Accrued Sales Staff Salaries
Non-Current Liabilities
Mortgage Loan
Total Liabilities
Net Assets
$
17140
18400
100
3800
41810
62000
(29375)
37000
(13200)
16800
1750
$
81250
56425
18550
32000
$
74950
24575
(12400)
87125
137675
50550
87125