Question

.) Prepare a fully a June 2017 (12 mar 297 700 Part B (16 marks) Travel as at 30 June 2017 is presented as follo The Adjusted Trial Balance for World Trav WORLD TRAVEL Adjusted Trial Balance as at 30 June 2017 Debit() Credits Account 195 540 Cash at bank Accounts receivable 10 200 Prepaid insurance I 500 Office supplies 920 000 Vehicles 319 000 Accumulated depreciation - vehicles 670 000 Land 369 000 Accounts payable 10 000 Wages payable 123 080 Mortgage payable (due 30 June 2024) 1 006 220 A. Fung. Capital 61 080 A. Fung, Drawings 795 800 Touring service revenue Car rental revenue 27 280 Depreciation expense - vehicles 39 900 Office supplies expense 300 63 000 Repair expense Electricity expense 40 700 39 360 Insurance expense Wages expense 311 100 S2650 380 $2650 380 Required: 1) Calculate the balance of A. Fung, Capital as at 30 June 2017. Show your workings (4 marks)

Answer 1

Solution

_{Calculation of profit}

_{Profit and Loss Account for the year ended 30.06.2007}

Expense	Amount	Income	Amount
Depreciation Expense - Vehicles	39,900	Touring service Revenue	795,800
Office Supplies Expense	300	Car Rental Revenue	27,280
Repair Expense	63,000
Electricity Expense	40,700
Insurance Expense	39,360
Wages Expense	311,100
Net Profit transferred to Capital	328,720
Total	823,080		823,080

Note - Since it an adjusted Trial Balance, no need to adjust any outstanding or prepaid expense. Also depreciation entry already passed and correspondingly accumulated depreciation has been credited

A.Fung Capital Balance as on 30.06.2017

Capital as per Trial Balance - 1006,220

Add- Net Profit for the year - 328,720

Less- Drawings. - (61080)

A.Fung Capital Balance. - 1273,860

Balance Sheet of World Travel as on 30.06.2017

Assets	Amount
Current Assets:-
Cash at bank	195,540
Accounts Receivable	297,700
Prepaid Insurance	10,200
Office Supplies	1,500
Other Assets:- Land	670,000
Vehicles	920,000

Total Assets 20,94,940

Liabilities	Amount
Current Liabilities:- Accounts payable	369,000
Wages payable	10,000
Long term Liabilities - Mortgage payable	123,080
Other liabilities & Provisions - Accumulated Depreciation	319,000
Owners Funds (As per working Note)	1,273,860
Total Liabilities	2,094,940