2. The owner took trading inventory for personal use. The selling price was R4 800 (VAT is not applicable). The mark up is 50% on cost price. The transaction has not been processed. The periodic inventory method is utilised by Central Perk Furniture Store. 3. The telephone and fax invoice for March 2020 of R2 430.15 has not yet been paid. 4. A debtor, C. Bing who owed R6 500 has been declared insolvent. The business received 35 cents on the Rand from the insolvent estate. This transaction must still be recorded. The remaining balance may be written off as irrecoverable. 5. The allowance for credit losses must be adjusted to the amount of R1 600. 6. Insurance expenses for April 2020 have been prepaid. The monthly premium has remained the same for the past two years. 7. Rent income for April 2020 of R4 200 has been received in advance. 8. Service income of R5 430 has not been received for March 2020. 9. The stock take revealed the following: ‐ Trading inventory – R15 640.32 ‐ Cleaning materials‐ R1 432.76 ‐ Stationery‐ R568.43 Required: Journalise the adjustments (First voucher number = No. 101). Note ‐ The subsidiary journals have been closed off, so all additional transactions are recorded in the general journal. No journal narrations or folio numbers are required. You are not required to journalise the closing transfers.

Question

2. The owner took trading inventory for personal use. The selling price was R4 800 (VAT is
not applicable). The mark up is 50% on cost price. The transaction has not been
processed. The periodic inventory method is utilised by Central Perk Furniture Store.
3. The telephone and fax invoice for March 2020 of R2 430.15 has not yet been paid.
4. A debtor, C. Bing who owed R6 500 has been declared insolvent. The business received
35 cents on the Rand from the insolvent estate. This transaction must still be recorded.
The remaining balance may be written off as irrecoverable.
5. The allowance for credit losses must be adjusted to the amount of R1 600.
6. Insurance expenses for April 2020 have been prepaid. The monthly premium has
remained the same for the past two years.
7. Rent income for April 2020 of R4 200 has been received in advance.
8. Service income of R5 430 has not been received for March 2020.
9. The stock take revealed the following:
‐ Trading inventory – R15 640.32
‐ Cleaning materials‐ R1 432.76
‐ Stationery‐ R568.43

Required:
Journalise the adjustments (First voucher number = No. 101).
Note ‐ The subsidiary journals have been closed off, so all additional transactions are recorded in the general journal. No journal narrations or folio numbers are required. You are not required to journalise the closing transfers.

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