Project description
Accounting Preparation & Case Study Assignment
From the trial balance of JT Engineering you are required to prepare the final accounts in the modern format. You must prepare an Income Statement for year ending 31st December 2012 and a Statement of Financial Position as at 31st December 2012. You must include all necessary adjustments.
JT Engineering Trial Balance as at 31st December 2012
Dr £ Cr £
Accounts Payables 8,100
Long-term bank loan 35,000
Purchases 150,000
Returns Outwards 800
Discount Received 2,200
Commission Received 37,800
Inventory as at 1/1/12 6,500
Business Rates 2,100
Wages & Salaries 73,000
Sales 440,000
Returns Inwards 1,200
Motor Expenses 900
Loan Interest 310
Land & Buildings 660,000
Machinery 52,000
Provision for Depreciation for Machinery 10,400
Motor Vehicles 23,000
Provision for Depreciation for Motor Vehicles 4,370
Accounts Receivables 9,200
Bank 36,400
Insurance 1,900
Electricity 1,600
Cash 1,200
Capital 507,640
Drawings 27,000
1,046,310 1,046,310
Closing Inventory as at 31/12/12 7,500

Adjustments £
Business Rates Accrual 200
Wages and Salaries Accrual 780
Insurance – Prepayment 300
Electricity – Prepayment 250

The business depreciates machinery 10% on cost (straight line), and it depreciates motor vehicles at 10% reducing balance. Depreciation has not been calculated for the year. The business does not depreciate land and buildings.
Accounting Preparation Task 50 Total Marks = (24 marks for the Income Statement
26 marks for the Statement of Financial Position

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Referencing Requirements:
main source has to be Frank Woods & Alan Sangster Business Accounting 1 (12th edition)
Rest you can add your own journals, sources etc.