Question

The following information relates to Lindisfarne Travel Pty Ltd as at 30 June 2020: Unearned Revenue 3,200 Accumulated Depreciation - Furniture & Fittings 76,500 Travel Expense 182,000 Salary Payable 500 Cash at Bank 45,500 Loan (paid in two years) 35,000 Sales Revenue 1,272,000 Prepaid Rent 8,000 Accounts Payable 26,500 Accounts Receivable 79,500 Furniture & Fittings 176,500 Capital ??? Depreciation Expense- Furniture & Fittings 24,500 Required: Prepare a classified Narrative Balance Sheet. Marks will be deducted for including items that do not belong. You will need to calculate the Capital amount.

Answer 1

Total assets = Total liabilities + Owners equity

Cash at bank + Accounts receivable + Prepaid rent + Furniture & Fittings-  Accumulated Depreciation (Furniture & Fittings) = Accounts payable+ Unearned revenue + Salaries payable + Loan + Capital, ending

45,500+79,500+8,000+176,500-76,500 = 26,500+3,200+500+35,000+ Capital,ending

233,000 = 65,200+ Capital, ending

Capital, ending = $167,800

Balance Sheet
Assets		Amount
Current Assets:
Cash at bank	45,500
Accounts receivable	79,500
Prepaid rent	8,000
Supplies
Total Current Assets		133,000
Plant,Assets :
Furnitures & fittings	176,500
Less:Accumulated Depreciation- Furnitures & fittings	-76,500
Total plant asset		100,000
Total Assets		233,000
Liabilities and Owners Equity
Current Liabilities:
Accounts payable	26,500
Unearned revenue	3,200
Salaries payable	500
Total Current liabilities		30,200
Long term Liabilities:
Loan	35,000
Total Long term Liabilities		35,000
Owners Equity:
Capital, ending	167,800
Total owners equity		167,800
Total Liabilities & Owners Equity		233,000