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Chapter 24

Chapter 1

Example 1

Trial balance question

The trial balance of Grey for the year ended 31 December 20X2 is shown
below. Various year-end adjustments are required and these are detailed
below the trial balance.

Debit Credit

$000 $000
Sales 95,500
Cost of sales 62,561
Distribution costs 5,175
Administrative expenses 6,560

Dividends received 750
Interest received 150
Interest paid 600
Property, plant and equipment at 1 January 20X2 34,765

Inventory at 31 December 20X2 7,516
Trade receivables 18,673
Short-term investment 6,500
Ordinary $1 share capital 15,000
Share premium 2,000

Revaluation surplus 1 January 20X2 5,000
Retained earnings 1 January 20X2 5,175
6% loan repayable in 20X9 10,000
Dividends paid 650

Trade payables 8,675
Bank 750
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143,000 143,000
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