Question

Question 1 The adjusted trial balance for Mario's Pizza Palace at 30 June is presented below: Mario's Pizza Palace Adjusted trial balance as at 30 June 20XX Account Credit number Account Debit 100 Cash 40,290 Cash float 110 460 Accounts receivable 120 668 130 Inventory - food Inventory - packaging Prepaid advertising 1,205 140 921 150 288 160 Prepaid insurance 1,212 Motor vehicles (cost) 170 16,350 - motor vehicles 171 Accumulated depreciation - 14,474 Store equipment (cost) 180 36,880 Accumulated depreciation - store equipment Accounts payable PAYG withholding payable 15,578 181 13,781 200 210 1,176 Superannuation payable Wages payable 220 273 1,384 230 Bank loan 280 18,885 Owner's capital Owner's drawings 300 59,676 41,712 310 Sales income 400 183,561 Sales returns and allowances 410 49 Discounts received 420 537 Delivery income 430 32 Food purchases 500 55,310 Purchase returns and allowances 510 418 Packaging costs Discount given 520 13,652 530 274 Freight inwards 540 77 Accountancy fees 600 1,278 Advertising expense 605 3,798 Bank charges 610 861 Depreciation 615 6,958 Electricity and gas expense 620 3,028

Fill in the blanks

Answer 1

Please go though above templates and trial balance to understand the answer provided below:-

1. In cash ledger shown in first screenshot of template above will be filled as follows

As trial balance as on 30th june is available, cash balance shown in trial balance is 40290 and same is filled as balance c/d on credit side in cash ledger. We have to fill the b/f balance on 1 july, it will be same as of closing balance on 30th june i.e. 40290.

In the same way, blank provided in accounts receivable account with 668.

2. Inventory shown in trial balance will be opening stock and closing stock value will be available as a note to trial balance.

Balance on 30th june for inventory-food will be 1855 as provided in notes and same will be shown in amount b/f on 1st july. Another blank column on credit side of inventory account will be filled with balancing figure amount i.e. 1205.

In the same way inventory packaging ledger can be filled.

3. Prepaid advertising- closing balance is shown in trial balance as 288 and the blank below shows the total so it will be filled with 288+288=576

Similarly, prepaid insurance blank will be filled.

4. Blanks provided on both sides in accounts payable ledger are total i.e 330+2842+13781=2262+14400+291=16953

5. Owner's capital closing balance is 59676 as provided in trial balance and other blank on credit side will the profit for the period i.e.20507(calculated in pt. no. 6. below and blank on debit side will be calculated as balancing figure i.e.59676+20507-41712=38471.

Blank below this blank is of total i.e. 59676+20507=80183.

6. In profit & loss summary, income will be 183561-49+537+32=184081

Purchase return/ inventory = 418+1855+3893=6166

Expenses will be total of items shown in trial balance from food purchases to wage expenses i.e. 55310+13652+274+77+1278+3798+861+6958+3028+2766+1005+5224+426+26776+716+348+3313+3790+40140=169740

Debit side blank column will be filled with net profit for the period= 184081+6166-169740=20507

7. In all the remaining ledgers, the blank given under detail columns are to be filled with word "Profit & loss account".