Financial Accounting: Alba Ltd. Trial Balance, Ledger, Adjustments

This assignment solution presents the trial balance for Alba Ltd. as of June 30, 2018, incorporating various adjustments. It includes detailed ledger extracts for accounts receivable, insurance, electricity expense, accumulated depreciation for party equipment and furniture, advances received, and expenses outstanding. The solution addresses adjustments related to expired insurance, unpaid electricity costs, depreciation, unearned revenue, prepaid rent, and hire fees. Furthermore, it demonstrates the calculation of net profit within the profit and loss account, providing a comprehensive overview of Alba Ltd.'s financial position and performance. The cash at bank account extract highlights relevant adjustments affecting the cash balance.

Answer 3:
ALBA LTD.
TRIAL BALANCE
As at 30 June 2018
Account Debit Credit
Cash at bank $ 5879
Accounts receivable 2136
GST receivable 3300
Prepaid insurance 1200
Party equipment 31400
Accumulated depreciation – party equipment $ 25450
Furniture 47300
Accumulated depreciation – furniture 32420
Accounts payable 6800
GST payable 5115
E. Johns, Capital 18710
E. Johns, Drawings 18310
Hire fees revenue 74700
Salaries expense 27310
Rent expense 4380
Maintenance expense 3100
Electricity expense 1700
Expenses Payable 1110
Prepaid Expenses 1320
Advances Received 1150
Insurance Expense 850
Depreciation Expense 17270
$ 165455 $ 165455
Relevant Ledger Extracts:
Accounts receivable
Balance b/d 2400 Cash at Bank 264
(From given trial
Balance) Balance C/f 2136
2,400 2,400

Insurance A/c
Cash at Bank 2050 P&L A/c 850
Prepaid Insurance A/c 1200
2,050 2,050
Electricity Expense A/c
Cash at Bank 1400 P&L A/c 1700
Expense O/s 300
1,700 1,700
Accumulated Depreciation - Party Equipment A/c
P&L A/c Balance b/d 17,600
P&L A/c 7850
Balance c/f 25,450
25,450 25,450
Accumulated Depreciation - Furniture A/c
Balance b/d 23,000
P&L A/c 9420
Balance c/f 32,420
32,420 32,420
Advances Received A/c
GST Payable 115 Cash at Bank 1265
Balance C/f 1150
1,265 1,265
Expense Outstanding A/c
P&L A/c
Salaries 810
Electricity 300
Balance C/f 1110
1,110 1,110

Profit and loss A/c
Salaries 27310 Hire fees revenue 76,500
Rent 4380
Maintenance 3100
Electricity 1700
Net Profit 40,010
76,500 76,500
Cash at Bank (Extract) A/c
Balance B/d (from
given Trial
Balance)
5200
Credit
Adjustments
Insurance 850
Debit
Adjustments
Advances
Received 1265
Hire Charges 264
Balance C/f 5879
6,729 6,729
Note: In this account only the relevant adjustments have been given effect, already
incorporated values have not been shown.