The following pre‐adjustment trial balance appeared in the books of Central Perk Furniture Storeat the end of their financial year. IGNORE VAT.Pre‐adjustment trial balance of Central Perk Furniture Store for the year ended 31 March 2020.Fol. Debit (R) Credit (R)Statement of financial position sectionCapital B1 500 000.00Drawings B2 25 000.00Land and buildings B3 865 000.00Vehicles B4 220 987.00Equipment B5 156 760.00Accumulated depreciation: Equipment(1 April 2019)B6 54 320.00Accumulated Depreciation: Vehicles(1 April 2019)B7 22 580.00Bank B8 22 430.00Debtors Control B9 35 600.00Allowance for Credit Losses‐ 1 April 2019 B10 1 780.25Petty Cash B11 1 378.98Trading inventory (1 April 2019) B12 27 865.43Mortgage Loan B13 287 650.00Creditors Control B14 31 420.00SARS(UIF/SDL/PAYE) B15 23 290.6520 2020© The Independent Institute of Education (Pty) Ltd 2020Page 6 of 7Fol. Debit (R) Credit (R)Nominal accounts sectionSales N1 1 167 371.07Sales Returns N2 25 340.87Purchases N3 520 389.76Purchases returns N4 76 540.32Service Income N5 10 987.45Rent Income N6 63 200.00Interest on debtors accounts N7 5 320.48Credit losses recovered N8 2 478.90Telephone and fax N9 17 430.22Credit Losses N10 9 650.55Office refreshments N11 6 540.76Cleaning materials N12 5 340 98Stationery N13 4 498.27Railage Inwards N14 1 976.54Insurance N15 50 600.00Electricity N16 12 356.45Interest on creditors Accounts N17 5 478.67Advertising N18 26 754.23Wages and Salaries N19 156 430.28Entertainment N20 14 560.70Fuel N21 34 569.432 246 939.12 2 246 939.12Additional Information:1. Provide for depreciation as follows:‐ On motor vehicles: 15% per annum on reducing balance method.‐ On equipment: 10% on cost. Note a new piece of equipment was purchased on1 September 2019 costing R54 000. This has been recorded properly. 2. The owner took trading inventory for personal use. The selling price was R4 800 (VAT isnot applicable). The mark up is 50% on cost price. The transaction has not beenprocessed. 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 received35 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 hasremained 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‐ R568.43Required:Journalise the adjustments (First voucher number = No. 101).Note ‐ The subsidiary journals have been closed off, so all additional transactions arerecorded in the general journal. No journal narrations or folio numbers are required. Youare not required to journalise the closing transfers.
The following pre‐adjustment
at the end of their financial year. IGNORE VAT.
Pre‐adjustment trial balance of Central Perk Furniture Store for the year ended 31 March 2020.
Fol. Debit (R) Credit (R)
Capital B1 500 000.00
Drawings B2 25 000.00
Land and buildings B3 865 000.00
Vehicles B4 220 987.00
Equipment B5 156 760.00
(1 April 2019)
B6 54 320.00
Accumulated Depreciation: Vehicles
(1 April 2019)
B7 22 580.00
Bank B8 22 430.00
Debtors Control B9 35 600.00
Allowance for Credit Losses‐ 1 April 2019 B10 1 780.25
Petty Cash B11 1 378.98
Trading inventory (1 April 2019) B12 27 865.43
Mortgage Loan B13 287 650.00
Creditors Control B14 31 420.00
SARS(UIF/SDL/PAYE) B15 23 290.65
20 2020
© The Independent Institute of Education (Pty) Ltd 2020
Page 6 of 7
Fol. Debit (R) Credit (R)
Nominal accounts section
Sales N1 1 167 371.07
Sales Returns N2 25 340.87
Purchases N3 520 389.76
Purchases returns N4 76 540.32
Service Income N5 10 987.45
Rent Income N6 63 200.00
Interest on debtors accounts N7 5 320.48
Credit losses recovered N8 2 478.90
Telephone and fax N9 17 430.22
Credit Losses N10 9 650.55
Office refreshments N11 6 540.76
Cleaning materials N12 5 340 98
Stationery N13 4 498.27
Railage Inwards N14 1 976.54
Insurance N15 50 600.00
Electricity N16 12 356.45
Interest on creditors Accounts N17 5 478.67
Advertising N18 26 754.23
Wages and Salaries N19 156 430.28
Entertainment N20 14 560.70
Fuel N21 34 569.43
2 246 939.12 2 246 939.12
Additional Information:
1. Provide for depreciation as follows:
‐ On motor vehicles: 15% per annum on
‐ On equipment: 10% on cost. Note a new piece of equipment was purchased on
1 September 2019 costing R54 000. This has been recorded properly.
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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