The case study outlined on this page is aimed at teachers and students alike. A teacher can use this case study to generate questions of varying levels of difficulty simply by printing out the contents of the spreadsheet file that accompanies the case. Since the case is based on the generation of random numbers, teachers can use this case to set one question for each student: all questions are guaranteed to be different to each other and all questions have their fully worked solution. This is a fantastic examination, assignment, tutorial question resource for teachers!

The student can generate questions, too; and can gain enormous benefit by being able to print out a question, work through it and then check the solution which is guaranteed to be correct. This is a fantastic examination practice resource for students.

For everyone, there are two years' worth of data available for each question meaning that at least three questions can be generated for each data set: year 1 only, year 2 only or years 1 and 2.

Read the instructions that follow to see how useful and valuable this case study really is.

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Specimen Question

Preparation of Final Accounts from a Trial Balance and Adjustments

a Using your bookkeeping and accounting knowledge and skill, prepare the following financial statements from the data supplied below.

i income statement for the relevant year ended
ii balance sheet as at the end of the relevant year

b You are also required to comment on the performance of the business as far as you are able by calculating what you consider to be the key performance indicators.

DW plc Trial Balance for the year ended 31 December 2003
Control Code: 3010	Dr	Cr
Ordinary Share Capital at $0.5 each		100000
Share Premium		150000
6% Debenture 2007		100000
rental income		2193
interest received		2120
Sales		142217
Purchases	64083
advertising	8728
petrol	2299
postage	225
telephone	3670
vehicle license and tax	2923
wages and salaries	12736
stationery	216
repairs and maintenance	3069
building expenses	2599
electricity expenses	5736
carriage inwards	1699
discounts allowed	1455
discounts received		1455
interim dividend	10000
buildings	36122
machinery	214093
vehicles	22379
office equipment	51131
debtors	14500
creditors		7000
sales returns	1250
purchase returns		2300
Sub totals	458913	507285
Cash	48372
Closing Stocks
debenture interest
taxation
final proposed dividend
Profit and Loss Account c/d
Accumulated Depreciation: buildings
Accumulated Depreciation: machinery
Accumulated Depreciation: vehicles
Accumulated Depreciation: office equipment
	507285	507285

You should take the following adjustments into account when drafting your statements.

Adjustments and Additional Information
Bad Debts to be written off	1422.17
Closing Stocks	2000
Prepayments
Stationery	20
Electricity Expenses	450
Total Prepayments	470
Expense Payables Details
advertising	700
telephone	145
wages and salaries	2250
Total Expense Payables	3095
Other Payables
debenture interest	6000
taxation	0
final proposed dividend	0

				Depreciation
Fixed Assets	Cost	Residual Values	Life	Rate (%)	Basis
buildings	36122	20000	50	2	Straight line basis
machinery	214093	55000	10	25	Reducing Balance basis
vehicles	22379	3500	3.333	3	Straight line basis
office equipment	51131	2500	3.333	3	Straight line basis

You are also required to include all of your working papers with your solution.

Click here to go back to the case study page.

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Buy the full case study and spreadsheet for only £5 (five GB Pounds)

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Duncan Williamson
22 September 2003