CHAPTER THREE

ACCOUNTING EQUATION AND DOUBLE ENTRY CONCEPT

Financial statements are outputs of an accounting system. They are prepared at the end of the financial
year, hence the name final accounts. However interim financial statements can be prepared before the
of the financial year ends. External user of accounting information is more interested in final accounts
or financial statements than books of account.

COMPONENTS OF FINANCIAL STATEMENT

• The Statement of Financial Position (SOFP) - Balance sheet
• Trading Profit and Loss Account/the Statement of Comprehensive Income

Statement of Financial Position

This is a financial statement of the assets, liabilities and ownership interests drawn up at a particular
point in time. This point in time for the annual financial statement is referred to as the entity’s year
end.

Statement of Comprehensive Income (Profit & Loss)

The Statement of Comprehensive Income details the trading results for the period. It details the
Revenue earned and the expenses incurred.

THE ACCOUNTING EQUATION

Represents the relationship btw A, L and C of a business. It is the foundation of double entry bookkeeping
system

A business owns properties. These properties are called assets. The assets are the business resources that enable
it to trade and carry out trading. They are financed or funded by the owners of the business who put in funds.
These funds, including assets that the owner may put is called capital. Other persons who are not owners of the
firm may also finance assets. Funds from these sources are called liabilities. The total assets must be equal to
the total funding i.e. both from owners and non-owners. This is expressed inform of accounting equation which
is stated as follows:

ASSETS = LIABILITIES + CAPITAL

Each item in this equation is briefly explained below.

Assets:
An asset is a resource controlled by a business entity/firm as a result of past events for which economic benefits
are expected to flow to the firm. An example is if a business sells goods on credit, then it has an asset called a
debtor. The past event is the sale on credit and the resource is a debtor. This debtor is expected to pay so that
economic benefits will flow towards the firm i.e. in form of cash once the customers pay.

Assets are classified into two main types:

i) Non-current assets (formerly called fixed assets).
ii) Current assets.

Non-current assets are acquired by the business to assist in earning revenues and not for resale. They are
normally expected to be in business for a period of more than one year.
Major examples include:
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 ▪ Land and buildings, Plant and machinery, Motor vehicles
▪ Fixtures, furniture, fittings and equipment

Current assets are not expected to last for more than one year. They are in most cases directly related to the
trading activities of the firm. Examples include:
▪ Stock of goods – for purpose of selling.
▪ Trade debtors/accounts receivables – owe the business amounts as a resort of trading.
▪ Cash at bank, Cash in hand, Prepaid expenses etc

Liabilities:
These are obligations of a business as a result of past events settlement of which is expected to result to an
economic outflow of amounts from the firm. An example is when a business buys goods on credit, then the firm
has a liability called creditor. The past event is the credit purchase and the liability being the creditor the firm
will pay cash to the creditor and therefore there is an out flow of cash from the business.

Liabilities are also classified into two main classes.

i) Non-current liabilities (or long-term liabilities)
ii) Current liabilities.

Non-current liabilities are expected to last or be paid after one year. This includes long-term loans from
banks or other financial institutions. Current liabilities last for a period of less than one year and therefore
will be paid within one year. Major examples:
▪ Trade creditors/accounts payable – owed amounts as a result of business buying goods on credit.
▪ Other creditors - owed amounts for services supplied to the firm other than goods.
▪ Bank overdraft - amounts advanced by the bank for a short-term period.
▪ Prepaid incomes

Capital:
This is the residual amount on the owner’s interest in the firm after deducting liabilities from the assets.

The Accounting equation can be expressed in a simple report called the Statement of Financial Position
(SOFP) Balance Sheet.

EXAMPLE 1
L Stokes sets up a new business. Before he actually sells anything, he has bought motor vehicles of
3,000, premises of 7,000, stock of goods 2,000. He still owes 800 in respect of them. He had
borrowed 4,000 from D Evans. After the events just described and before trading starts, he had ₤300
cash in hand and 600 cash at bank.

You are required to calculate the amount of his capital.

Solution:
Assets: ₤ ₤
Motor Vehicle 3,000
Premises 7,000
Stock 2,000
Cash at bank 600
Cash in hand 300
12,900
Liabilities:
Creditors 800
Loan - D Evans 4,000 (4,800)
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 8,100
Capital 8,100

Remember the Accounting equation:

Assets = Liabilities + Capital.

To get capital we rearrange the equation as follows:

Capital = Assets - Liabilities

Total Assets = 12,900

Total Liabilities = (4,800)
Capital = 8,100

EXAMPLE 2

C Kings has the following items in his balance sheet as on 30 June 2002.
Capital 41,800, Creditors 3,200, Fixtures 7,000, Motor Vehicles 8,400, Stock of goods 9,900,
Debtors6,500, Cash at bank 12,900 and Cash in hand 240.

During the first week of July 2002:

a. He bought extra stock of goods1,540 on credit.
b. One of the debtors paid him 560 in cash.
c. He bought extra fixture by cheque £2,000.

You are to draw up a balance sheet as on 7 July 2002 after the above transactions have been
completed.
First we need to look at the effect of the above transactions on the assets and liabilities of C Kings.
For
(a) Buying extra stock increases the level of stock by 1,540 and because this is bought on
credit the creditors increase by 1,540 also.
(b) Amount received from the debtor means that the level of debtors reduces and cash
increases by 560.
(c) Extra fixtures bought by cheque, will increase the fixtures and reduce the cash at bank by
£2,000.

This can be summarized as follows:

Opening Increase/(Decrease) Closing
Balances Balances
£ £
Capital 41,800 - 41,800
Creditors 3,200 1,540 4,740
Fixtures 7,000 2,000 9,000
Motor Vehicles 8,400 - 8,400
Stock 9,900 1,540 11,440
Debtors 6,560 (560) 6,000
Cash at bank 12,900 (2000) 10,900
Cash in hand 240 560 800

Given these closing balances then the balance sheet can be drawn as follows:

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 C Kings
Balance sheet as at 7 July 2002

Non Current Assets

Fixtures 9,000
Motor Vehicles 8,400
17,400

Current Assets
Stock 11,440
Debtors 6,000
Cash at bank 10,900
Cash at hand 800 29,140
46,540

Current Liabilities
Creditors 4,740
Capital 41,800

From the illustration remember that any change in the items of the balance sheet will have a double
effect on the accounting equation has a double effect and therefore the equation will always balance.

EXAMPLE 3

D Moody has the following assets and liabilities as on 31 April 2002:

Creditors 15,800
Equipment 46,000
Motor Vehicle 25,160
Stock 24,600
Debtors 23,080
Cash at bank 29,120
Cash in hand 160

During the first week of May 2002 Moody:

a. Bought extra equipment on credit for 5,520.
b. Bought extra stock by cheque 2,280.
c. Paid creditors by cheque 3,160.
d. Debtors paid 3,360 by cheque and 240 by cash.
e. Moody put in extra 1,000 cash as capital.

Required:
a. Determine the capital as at 1st May 2002.
b. Draw up a balance sheet after the above transactions have been completed.

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Solution:
(i) Using the accounting equation of Assets = Liabilities + Capital,
Assets shs Liabilities shs
Equipment 46,000 Creditors 15,800
Motor Vehicle 25,160
Stock 24,600
Debtors 23,080
Cash at bank 29,120
Cash in hand 160
148,120

Capital = Assets – Liabilities

= 148,120 -15,800 = 132,320

(ii) To draw up the balance sheet,

This is also summarized as follows:

Opening Adjustment Closing
Balance Increase/Decrease Balance
Assets/Liabilities
Equipment 46,000 +5,520 51,520
Motor Vehicle 25,160 25,160
Stock 24,600 +2,280 26,880
Debtors 23,080 -3,600 19,480
Cash at bank 29,120 (-2,280 – 3,160 + 3,360) 27,040
Cash in hand 160 (+240 + 1000) 1,400
Creditors 15,800 (+5,520 – 3,160) 18,160
Capital 132,320 +1,000 133,320

D Moody
Balance sheet as at 7 May 2002
Non Current Assets
Equipment 51,520
Motor vehicle 25,160
76,680
Current Assets
Stock 26,880
Debtors 19,480
Cash at bank 27,040
Cash in hand 1,400 74,800
151,480
Current Liabilities
Creditors 18,160
Capital 133,320

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Double Entry Concept
The Accounting equation forms the basis of double entry and therefore it should always be maintained.
Any change in assets, liabilities or capital will have a double effect such that assets will always be
equal to liabilities plus capital. If the owners put in additional capital, then this will increase the cash
at bank and the capital amount therefore the equation is still maintained.

Name
Debit (DR) Credit (CR)
Date Detail Folio Amount Date Detail Folio Amount

In this account the date will show the opening period of the asset, liability or capital i.e. the balance
brought forward. It will also show the date when a transaction took place (i.e. either an asset was
bought or liability incurred).

The detail column (also called the particulars column) shows the nature of the transaction and
reference to the corresponding account. The Folio Column for purposes of detailed recording shows
the reference number of the corresponding account. The amount column shows the amount of the
asset, liability or capital.

The left side of the account is called the debit side and the right side is called the credit side. All assets
are shown or recorded on the debit side while all the liabilities and capital are recorded on the credit
side. Each type of asset or liability must have its own account whereby all transactions affecting them
are recorded in this account. Therefore, there should be an account for Premises, Plant and Machinery,
Stock, Debtors, Creditors etc.

For the double entry to be reflected in the accounts, every debit entry must have a corresponding credit
entry. The transactions affecting these accounts are posted in the account as debit entry and credit
entry to complete the double entry.

When we make a debit entry we are either:

i. Increasing the value of an asset.
ii. Reducing the value of a liability.
iii. Reducing the value of capital.

When we make a credit entry we are either:

i. Reducing the value of an asset.
ii. Increasing the value of a liability.
iii. Increasing the value of capital.

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EXAMPLE 4
H Jumps has the following assets and liabilities as on 30 November 2002:
Creditors 39,500; Equipment 115,000; Motor vehicle 62,900; Stock 61,500; Debtors 57,700; Cash at
bank 72,800 and Cash in hand 400.

a) Compute the balance on the capital account as at 30 November 2002.

During the first week of December 2002, Jump:

a. Bought extra equipment on credit for 13,800.
b. Bought extra stock by cheque 5,700.
c. Paid creditors by cheque 7,900.
d. Received from debtors 8,400 by cheque and 600 by cash.
e. Put in extra 2,500 cash as capital.

b) You are to draw up a balance sheet as on 7 December 2002 after the above transactions have
been completed.

Answer:
a) Balance on the capital account as at 30 November 2002.
Capital = Assets – Liabilities
Assets Liabilities
Equipment 115,000 Creditors 39,500

Motor vehicle 62,900

Stock 61,500
Debtors 57,700
Cash at bank 72,800
Cash in hand 400
371,300
Capital = 371,300 - 39,500 = 330,800

b) Balance sheet as on 7 December 2002

Creditors A/C Motor Vehicles a/c

2002 £B 2002 £ 2002 2002 £
Bank 7900 1.12 Bal b/d 39,500 1.12 Bal b/d 62,900 1.12 Bal c/d 62,900
1.12 Bal c/d 31,600

62,900 62,900

39,500 39,500

Equipment a/c
2002 £ 2002 £
1.12 Bal b\d 115,000
Creditors 13,800 7.12 Bal c\d 128,800
128,800 128,800
Stock a/c
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2002 £ 2002 £
1.12 Bal b\d 61,500
Bank 5700 7.12 Bal c\d 67,200
67,200 67,200

Debtors a/c
2002 £ 2002 £
1.12 Bal b\d 57,700 Bank 8,400
Cash 600
Bank 570 7.12 Bal c\d 48,700
57,700 57,700

Cash at Bank a/c

2002 £ 2002 £
1.12 Bal b\d 72,800 Stock 5,700
Creditors 7,900
Debtors 8,400 7.12 Bal c\d 67,600
81,200 81,200

Cash in hand a/c

2002 £ 2002 £
1.12 Bal b\d 400
Debtors 600
Capital 2500 7.12 Bal c\d 3500
3500 3500

Capital
2002 £ 2002 £
1.12 Bal b\d 330800
7.12 Bal b\d 333300 Cash 2500
128,800 128,800

Creditors Of Equipment
2002 £ 2002 £

7.12 Bal b\d 13800 Equipment 13800

13,800 13,800

H Jump
Balance sheet as at 7 December 2002
Non Current Assets
Equipment 128,800
Motor vehicles 62,900
191,700
Current Assets
Stock 61,200
Debtors 48,700
Cash at Bank 67,600
Cash in Hand 3,500 187,000
378,700
Current Liabilities
Creditors of equipment 13,800
Creditors 31,000 45,400
Capital 333,300
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EXAMPLE 5
Write up the asset, capital and liability accounts in the books of M Crash to record the following
transactions:
2002
June 1 Started business with 50,000 in the bank.
“ 2 Bought motor van paying by cheque 12,000.
“ 5 Bought Fixtures 4,000 on credit from Office Masters Ltd.
“ 8 Bought a van on credit from Motor Cars Ltd 8,000.
“ 12 Took 1,000 out of the bank and put it into the cash till.
“ 15 Bought Fixtures paying by cash 600.
“ 19 Paid Motor Cars Ltd by cheque 8000.
“ 21 A loan of 10,000 cash is received from J Marcus.
“ 25 Paid £8,000 of the cash in hand into the bank account.
“ 30 Bought more Fixtures paying by cheque 3,000.

Capital a/c Cash at bank a/c

2002 £ 2002 £ 2002 £ 2002 £

30/6 Bal c/f 50,000 1/6 Bank 50,000 1/6 Capital 50,000 2/6 Van 12,000
12/6 Cash 8,000 12/6Cash 1,000
19/6Motor ltd 8,000
50,000 50,000 30/6 Fixtures 3,000
30/6 Bal c/f 34,000

58,000 58,000

Motor Van
2002 £ £
2/6 Bank 12,000
8/6 Super M 8,000 30/6 Bal c/f 20,000
20000 20000

Fixtures
2002 £ 2002 £
5/6 young 4,000
15/6 Cash 600
30/6 Bank 3000 Bal c/f 7,600
7,600 7,600

Motor Car Ltd – Creditors

2002 £ 2002 £
19/6 Bank 8000 8/6 Van 8000
8000 8000

Office Masters Ltd - Creditor

2002 £ 2002 £
30/6 B\f 4000 8/6 Fixtures 4000
4000 4000

Cash in hand
2002 £ 2002 £

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 12/6 Cash 1,000 15/6 Cash 600
25/6 Bank 800
21/6 J. Marcus 10000 30/6 Bal c/f 2400
11000 11000

J. Marcus - Loaner
2002 £ 2002 £
30/6 c\f 10000 21/6 Cash 10000

Note that the difference between the debit side and the credit side is the balancing figure. Most assets
will have a balance on the credit side and most liabilities and capital accounts will have a balance on
the debit side.

M Crash
Balance Sheet as at 30th June 2002
£ £
Non Current Assets
Fixtures 7,600
Motor vehicles 20,000
27,600
Current Assets
Cash at bank 34,000
Cash in hand 2,400 36,400
64,000

Capital 50,000
Current Liabilities
Creditors – others 4,000

Non Current Liabilities

Loan – J Jarvis 10,000
64,000

EXAMPLE 6
You are to enter the following transactions, completing the double entry in the books for the month of
May 2002.
2002
May 1 Started business with 2,000 in the bank.
“ 2 Purchased goods 175 on credit from M Rooks.
“ 3 Bought furniture and fittings 150 paying by cheque.
“ 5 Sold goods for cash 275.
“ 6 Bought goods on credit 114 from P Scot.
“ 10 Paid rent by cash 15.
“ 12 Bought stationery 27, paying in cash.
“ 18 Goods returned to M Rooks 23.
“ 21 Let off part of the premises receiving rent by cheque 5.
“ 23 Sold goods on credit to U Foot for 77.
“ 24 Bought a motor van paying by cheque 300.
“ 30 Paid the month’s wages by cash 117.
“ 31 The proprietor took cash for himself 44.

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SOLUTION
Bank a/c
2002 £ 2002 £
1/5 Capital 2,000 3/5Furn& fitting 150
24/5 Motor vehicle 300
21/5 Rent 5 31/5 Bal c/f 1,555
2,005 2,005

Capital a/c
31/5 Bal c/f 2,000 1/5 Bank 2,000

Purchases a/c
2002 £ 2002 £
2/5M Rooks 175
6/5 P Scot 114 31/5 Bal c/f 289
289 289

Creditor – M Rooks a/c

2002 £ 2002 £
18/5 Returns in 23 2/5 Purchases 175
31/5 Bal c/f 152
175 175

Furniture & Fittings a/c

2002 £ 2002 £ Sales a/c
3/5 Bank 150 31/5 Bal c/f 150
2002 £ 2002 £
31/5 Bal c/f 352 5/5 Cash 275
150 150 23/5 U. Foot 77

352 352

Cash in hand a/c

2002 £ 2002 £ P Scot a/c
5/5 Sales 275 10/5 Rent 15 2002 £ 2002 £
12/5 Stationery 27 31/5 Bal c/f 114 6/5Purchases 114
30/5 Wages 117
31/5 Bal c/f 116

275 275 114 114

Expenses – Rent a/c Expenses – Stationery a/c

2002 £ 2002 £ 2002 £ 2002 £

11/5 Bal c/f 15 10/5 Cash 15 12/5 Cash 27 31/5Bal c/f 27

27 27
Returns – Out a/c Income – Rent a/c
2002 £ 2002 £ 2002 £ 2002 £
31/5 Bal c/f 23 18/5 M Rooks 23 21/5 Bal c/f 5 31/5 Bank 5
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 Debtors – U Foot a/c Motor vehicle a/c
2002 £ 2002 £ 2002 £ 2002 £
23/5 Sales 77 31/5 Bal c/f 77 24/5 Bank 300 31/5 Bal c/f 300

Expenses – Wages a/c Drawings a/c

2002 £ 2002 £ 2002 £ 2002 £
30/5 Cash 117 31/5 Bal c/f 117 31/5 Cash 44 31/5 Bal c/f 44

TRIAL BALANCE
The trial balance is a simple report that shows the list of account balances classified as per the debits
and credits. The purpose of the trial balance is to show the accuracy of the double entries made and to
facilitate the preparation of final accounts i.e. the trading, profit & loss account and a balance sheet.
The debits of the trial balance should be the same as the credits if not then there is an error in one or
more of the accounts. From the trial balance please note that assets and expenses are on the debit side.
Capital, liabilities and incomes are normally listed on the credit side. The next example is a detailed
one that shows extracting of trial balance once all the postings have been made in the relevant
accounts.

EXAMPLE 7
The following information relate to S Pink:
2003
March 1 Started business with cash £1,700.
“ 2 Bought goods on credit from A Cliks £296.
“ 3 Paid rent by cash £28.
“ 4 Paid £1,000 of the cash of the firm into a bank account.
“ 5 Sold goods on credit to J Simpson £54.
“ 7 Bought stationery £15 paying by cheque.
“ 11 Cash sales £49.
“ 14 Goods returned by us to A Cliks £17.
“ 17 Sold goods on credit to P Lutz £29.
“ 20 Paid for repairs to the building by cash £18.
“ 22 J Simpson returned goods to us £14.
“ 27 Paid A Cliks by cheque £279.
“ 28 Cash purchases £125.
“ 29 Bought a motor vehicle paying by cheque £395.
“ 30 Paid motor expenses in cash £15.
“ 31 Bought fixtures £120 on credit from R west.

Required:
a) Post to relevant individual ledger accounts.
b) Prepare trial balance as at the end of the period.

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Solutions Capital a/c Cash in hand a/c

2003 £ 2003 £ 2003 £ 2003 £

31/3 Bal c/d 1,500 1/3 Cash 1,500 1/3 Capital 1,500 3/3 Rent 28
11/3 Sales 49 4/3 Bank 1,000
20/3 Repairs 18
28/3 Purchases 125
30/3 Motor exp. 15
31/3 Bal c/d 363

1,549 1,549
Purchases a/c
2003 £ 2003 £
2/3 A Hanson 296 31/3 Bal c/d 421 Creditors – A Cliks ac
28/3 Cash 125
2003 £ 2003 £
421 421 14/3 Returns out 17 2/3 Purchases 296
27/3 Bank 279

296 296

Rent –Expenses a/c Bank a/c

2003 £ 2003 £ 2003 £ 2003 £

3/3 Cash 28 31/3 Bal c/d 28 4/3 Cash 1,000 5/3 Stationery 15
27/3 A. Hanson 279
29/3 Motor van 395
31/3 Bal c/d 311
1,000 1,000

Debtor – J Simpson a/c Sales a/c

2003 £ 2003 £ 2003 £ 2002 £

3/3 Sales 54 22/3 Returns in 14 31/3 Bal c/d 132 5/3 JSimpson 54
31/3 Bal c/d 40 11/3 Sales 49
17/3 P Lutz 29
54 54
132 132

Stationery a/c
2003 £ 2003 £ Returns outwards a/c
7/3 Bank 15 31/3 Bal c/d 15
2003 £ 2003 £
31/3 Bal c/d 17 14/3 A Cliks 17

P Lutz – Debtor a Building repairs - expenses

2003 £ 2003 £ 2003 £ 2003 £

17/3 Sales 29 21/3 Bal c/d 29 20/3 Cash 18 31/3 Bal c/d 18

Returns - Inwards
Motor vehicle
2003 £ 2003 £ 2003 £ 2003 £
22/3 J Simpson 14 31/3 Bal c/d 14 29/3 Bank 395 31/3 Bal c/d 395

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 R West – Creditor (others) Motor expenses

2003 £ 2003 £ 2003 £ 2003 £

31/3 Bal c/d 120 31/3 Fixtures 120 30/3 Cash 15 31/3 Bal c/d 15

Fixtures
2003 £ 2003 £
31/3 A. Webster 120 31/3 Bal c/d 120

S PINKS
TRIAL BALANCE AS AT 31 MARCH 2003
Debit (£) Credit (£)
Capital 1500
Purchases 421
Cash in hand 363
Bank 311
Rent expense 28
Sales 132
Fixtures 120
Debtor – J Simpson 40
Debtor – P Lutz 29
Motor vehicle 395
Creditors - -
Motor expenses 15
Returns inwards 14
Creditors others – R West 120
Stationery 15
Returns outwards 17
Building repairs 18 -
1769 1769

EXAMPLE 8
The following transactions took place during the month of May:
2003
May 1 Started firm with capital in cash of £250.
“ 2 Bought goods on credit from the following persons: R Kelly £54; Pcombs £87;
J Role £25; D Mobile £76; I. Sims £64.
“ 4 Sold goods on credit to: C Blanes £43; B Long £62; F Skin £176.
“ 6 Paid rent by cash £12.
“ 9 C Blanes paid us his account by cheque £43.
“ 10 F Skin paid us £150 by cheque.
“ 12 We paid the following by cheque: J Role £25; R Kelley £54.
“ 15 Paid carriage by cash £23.
“ 18 Bought goods on credit from P Combs £43; Mobile £110.
“ 21 Sold goods on credit to B Long £67.
“ 31 Paid rent by cheque £18.

Required:
a) Post to relevant individual ledger accounts.
b) Prepare trial balance as at the end of the period.

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 Solution
Capital Cash in Hand
2003 £ 2003 £ 2003 £ 2003 £
31/5 Bal 250 1/5 Cash 250 1/5 Capital 250 6/5 Rent 12
c/d
15/5 Carriage 23
. 31/5 Bal c/d 215
250 250

Creditor R Kelly Creditor P Combs

2003 £ 2003 £ 2003 £ 2003 £
12/5 Bank 54 2/5 Purchases 54 31/5 Bal c/d 130 2/5 Purchases 87
. 18/5 Purchases 43
130 130

Creditor – J Role Creditor – D Mobile

2003 £ £ 2003 £ 2003 £
12/5 Bank 25 2/5 Purchases 25 31/5 Bal c/d 18 2/5 Purchases 76
6
. 18/5 Purchases 110
186 186

Creditor I Sims Debtor C. Blares

2003 £ 2003 £ 2003 £ 2003 £
31/5 Bal c/d 64 2/5 Purchases 64 4/5 Sales 43 4/5 Bank 43

Debtor B Long Debtor F Smith

2003 £ 2003 £ 2003 £ 2003 £
4/5 Sales 62 31/5 Bal c/d 129 4/5 Sales 176 10/5 Bank 150
21/5 Sales 67 . 31/5 Bal c/d 26
129 129 176 176

Purchases Sales
2003 £ 2003 £ 2003 £ 2003 £
2/5 R Kelly 54 31/5 Bal c/d 459 31/5 Bal c/f 348 4/5 C Blanes 43
2/5 P Combs 87 4/5 F Long 62
2/5 J Role 25 4/5 F Skin 176
2/5 D Mobile 76 4/5 B Long 67
2/5 L Sims 64 .
18/5 P Combs 43 348 348
18/5 D. Mobile 100 .
459 459

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 Bank Carriage Expenses
2003 £ 2003 £ 2003 £ 2003 £
9/5 C Blanes 43 12/5 J Role 25 15/5 Cash 23 Bal b/f 23
10/5 H F Skin 150 12/5 R Kelly 54
31/5 Rent 18
. 31/5 Bal c/d 96
193 193

Rent
19x6 £ 19x6 £
6/5 Cash 12 31/5 Bal c/d 30
31/5 Bank 18 .
30 30

Trial Balance as at 31/5/2003

Debit Credit
Capital - 250
Cash 215 -
Creditor – R Kelly - -
Creditor – P Combs - 130
Creditor – J Role - -
Creditor – D Mobile - 186
Creditor – L. Simms - 64
Debtor – C. Blanes - -
Purchases 459 -
Sales - 348
Debtor- B. Long 129 -
Debtor- F Skin 26 -
Bank 96 -
Carriage -
Rent 30 -

978 978

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