This assignment explores Startup Business trial Balance. There is as well a Spreadsheet Template Analysis. So, consolidate and apply learning about the working of the extended trial balance

Startup Business trial Balance – Spreadsheet Template Analysis

Aim: To consolidate and apply learning about the working of the extended trial balance

A startup business approaches a building company to build a newspaper kiosk.Also,  the building company agrees to undertake the project for £7,500.

The startup business cannot pay right away, as their overdraft limit is £2,500.Also,  the startup business is allowed to use this as a down payment for the work to be done.

The startup buys £1,500 worth of goods for resale, using trade credit, and takes delivery of £300 worth of newspapers, also on credit.

On the first day of trading, the startup business takes £2,500 in cash.

Startup Business trial Balance – Spreadsheet Template Analysis

At the end of the first day, there is £350 of saleable stock left and only half the newspapers have been sold. The remaining half can be returned to the distributor for a full refund.

Trading follows the same pattern for the following six days. The business takes £2,500 per day, and buys exactly the amount that was used on the first day—always taking trade credit.

At the end of the sixth day, the trade creditors (except for the building company) are paid. The building company is not yet paid as this payment has been postponed until after the end of the period.

Post these entries in the blank extended trial balance and answer the following questions:

·         What profit did the startup business make?

·         Where did its profit go?

 TASK Two 

On the spreadsheet template, record the following opening transactions for a small business.

1st January

·        Also,  The owner puts £10,000 in the business bank account.

·         The business pays the first two months’ rent on shop premises: £5,000.

3rd January

Detailed Instructions


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