This list of balances and totals is from the books of Thando Traders as at 30 September 20x5:

Adjustments and other information:

1. On 30 September 20x5, a receivable paid his account of R1 200. Although the money had been deposited at the bank, no entries were made for this transaction.
2. The salaries amount is for an employee who joined Thando Traders six months ago. 

His salary for September has still not been paid on 30 September 20x5.

3. Depreciation on furniture and equipment is to be written off at 10% per annum on the diminishing-balance method. Furniture that cost R1 000 was bought on 1 July 20x5.

4. An amount of R600 must be written off as bad debts.

5. Adjust the allowance for bad debts to 5% of trade receivables.

6. The loan of R3 000 at Southern Bank was made on 1 February 20x5 and interest of R175 had not yet been paid.

You are required to:

1. Journalise adjustments 2 to 6.

2. Draft the trading account.

3. Draft the profit and loss account.

Transcribed Image Text:

Capital (1 October 20x4) Drawings Land and buildings at cost Furniture and equipment at cost Provision for depreciation: Furniture and equipment (1 October 20x4) Bank overdraft Loan from Southern Bank (long-term) Accounts receivable Accounts payable Allowance for bad debts Inventory (30 September 20x5) Cost of sales Sales Sales returns Bad debts Railage on sales Salaries General expenses Interest on bank overdraft 43 150 00 13 100 00 21 050 00 3 000 00 1 000 00 2 300 00 3 000 00 30 800 00 24 000 00 1 400 00 22 700 00 51 100 00 79 200 100 600 00 250 00 650 00 3 790 00 6 810 00 ………... .…....... 200 00