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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.

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.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 24CE
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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.

Sales Retums N2 25 340.87 Purchases N3 S20 389.76 Purchases retums N4 76 540.32 Service income N5 10 987.45 Rent Income N6 63 200 00 Interest on debtors accounts N7 $320.48 Credit losses recovered N8 2478.90 Telephone and fax N9 17 430 22 Credit Losses N10 9 650 55 Office refreshments N11 6540.76 Cleaning materials N12 5 340 98 Stationery N13 4 498.27 Railage Inwards 1976 54 N14 Insurance N15 SO 600.00 Electricity N16 12 356.45 Interest on creditors Accounts N17 5478.67 Advertising NI8 26 754.23 N19 156 430.28 Wages and Salaries Entertainment N20 14 S60.70 Fuel N21 34 569.43 2 246 939.12 2 246 939.12 Additional Information: Provide for depreciation as folows On moter vehicles 15% per annum on reduting balance method. On equipmient on cost. Note anew piece of equipment was purchased on 1September 2019 costing R54 000. This has been recorded properly
Transcribed Image Text:Sales Retums N2 25 340.87 Purchases N3 S20 389.76 Purchases retums N4 76 540.32 Service income N5 10 987.45 Rent Income N6 63 200 00 Interest on debtors accounts N7 $320.48 Credit losses recovered N8 2478.90 Telephone and fax N9 17 430 22 Credit Losses N10 9 650 55 Office refreshments N11 6540.76 Cleaning materials N12 5 340 98 Stationery N13 4 498.27 Railage Inwards 1976 54 N14 Insurance N15 SO 600.00 Electricity N16 12 356.45 Interest on creditors Accounts N17 5478.67 Advertising NI8 26 754.23 N19 156 430.28 Wages and Salaries Entertainment N20 14 S60.70 Fuel N21 34 569.43 2 246 939.12 2 246 939.12 Additional Information: Provide for depreciation as folows On moter vehicles 15% per annum on reduting balance method. On equipmient on cost. Note anew piece of equipment was purchased on 1September 2019 costing R54 000. This has been recorded properly
Pre-adjustment trial belance of Central Perk Fumiture Store for the year ended $1 March 2aa Fol. Debit ( Cred () Statement of tnancial position section Capital 500 000.00 Drawings 25 000.00 82 Land and buldings 865 000.00 Vehcles 84 220 987.00 Equipment 156 760.00 Accumulated depreciation: fquipment 54 320.00 86 (1 April 2019) Accumulated Depreciation: Vehicles 22 sa0.00 (1 April 2019) Bank 22430.00 Debtors Controt 35 600.00 Allowance for Credit Losses- 1 April 2019 B10 1 780.25 Petty Cash B11 1378.98 Trading inventory (1 April 2019) 812 27 865.43 Mortgage Loan B13 287 650.00 Creditors Control B14 31420.00 SARS(UIF/SDL/PAYE) 81S 23 290.65 OThe pende eft ao 200 fol. Debit (R) Credit (R Nominal accounts section N1 1167 371.07 Sales Sales Returns N2 25 340.87 ACRO6112 Take Hn IMG 6850 ipg IMG 6849. jpg docy
Transcribed Image Text:Pre-adjustment trial belance of Central Perk Fumiture Store for the year ended $1 March 2aa Fol. Debit ( Cred () Statement of tnancial position section Capital 500 000.00 Drawings 25 000.00 82 Land and buldings 865 000.00 Vehcles 84 220 987.00 Equipment 156 760.00 Accumulated depreciation: fquipment 54 320.00 86 (1 April 2019) Accumulated Depreciation: Vehicles 22 sa0.00 (1 April 2019) Bank 22430.00 Debtors Controt 35 600.00 Allowance for Credit Losses- 1 April 2019 B10 1 780.25 Petty Cash B11 1378.98 Trading inventory (1 April 2019) 812 27 865.43 Mortgage Loan B13 287 650.00 Creditors Control B14 31420.00 SARS(UIF/SDL/PAYE) 81S 23 290.65 OThe pende eft ao 200 fol. Debit (R) Credit (R Nominal accounts section N1 1167 371.07 Sales Sales Returns N2 25 340.87 ACRO6112 Take Hn IMG 6850 ipg IMG 6849. jpg docy
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