Extended Trial Balance

Hi everyone, just working through a few past papers getting ready for 3 weeks times :(. One question that struck me as difficult, dont think i was at college when we did this, was the extended trial balance, any thoughts would be really helpful thanx <BR>The questions readsprior to the calculation of profit the balance sheet columns showed 247,000 for the debit balances and 231,000 for the credit balances. the balances included drawings at £46,000 and capital at £164,230. Calculate the profit or loss and the final capital balance???? I understand drawings is a debit and capital is a credit, but the question just throws me, and knowing my luck it will come up inexam. Im sitting MFR Intermediate.<BR><BR>Hope someone can help me

[jasper]

hiya<BR><BR>hope i get this right.<BR><BR>the difference between the two sides on the ETB is either profit or loss. therefore you have £16,000 on the credit side which shows a &quot;profit&quot;.<BR><BR>When you draw up your balance sheet, the calculations are as follows:-<BR><BR>Financed by:-<BR><BR>Capital £164230<BR>Add Net profit £16000<BR>Less Drawings £46000<BR><BR> £134230<BR><BR><BR>Please anyone correct me if I have that wrong.<BR><BR>Jasper

[jasper]

talk about spooky!!!!<BR><BR>I've just sat down and done a past paper and guess which question was in it?!?!<BR><BR>Yip you guessed it, the one above, and i have the answers from my tutor and its right. Just gotta learn the rest of ETB now ;-/

hiya just thought id say thanks, im not offically revising!! its doing my head in but id thought id take a few notes. thanks for that, i think i get what you mean but can I ask where was the 16,000 from??? ive actually lost that paper since sunday or ive seen it and not noticed. thats what this course is doing to me, god knows what im going to be like at technician i dont even know how ive got this far.<BR><BR>hope your revision is going ok<BR><BR>emma

[jasper]

hi<BR><BR>The £16000 is the difference between £247,000 and £231,000. These were the dr and cr on the ETB for the balance sheet. The difference between these two sides determines net profit or loss. in this case you would need an extra £16000 on the credit side for it to balance, therefore its profit.<BR><BR>good luck to you too. i think this forum is great, everyone offers lots of help and support. I dont know how i've got this far either.

thanks so much. was out on the lash last night am getting some revision done before i go out again!!! have done a few papers but this is really getting me down. thank god have got the week before off work!!!<BR><BR>any help i can give please ask, i do know some things :)<BR><BR>emma