The following is a list of balances at 30 June 2002 taken from the general ledger...

 

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The following is a list of balances at 30 June 2002 taken from the general ledger of AB Traders. Land and buildings at cost price Shop equipment at cost price Accumulated depreciation on shop equipment Office equipment Accumulated depreciation on office equipment Inventory 30/6/2001 Packaging material inventory Debtors Cash in bank Capital: S Arak 1/7/2001 Drawings: S Arak Creditors Purchases Purchases retums Discount on purchases Carriage on purchases Salaries Advertising costs Office expenses Delivery costs Sundry expenses Sales Commission paid / expense Rental paid / expense Additional information 1. 2. 3. 4. Closing inventory at 30 June 2002- R8 000. Packaging material used during the year- R12 000. Provision for depreciation is as follows: (c) . Shop equipment -10% per annum on net book value Office equipment - 5% per annum on cost price Advertising costs owing on 30 June 2002-R2 000. Required (a) Journalise the adjustments. [b] Prepare an income statement for the year ended 30 June 2002. Prepare a balance sheet as at 30 June 2002. R 300 000 140 000 40 000 20 000 8 000 60 000 16 000 110 000 10 000 526 000 24 000 50 000 140 000 4.000 6.000 10.000 48 000 18 000 10 000 230 16 000 22 000 360 000 10.000 40 000 The following is a list of balances at 30 June 2002 taken from the general ledger of AB Traders. Land and buildings at cost price Shop equipment at cost price Accumulated depreciation on shop equipment Office equipment Accumulated depreciation on office equipment Inventory 30/6/2001 Packaging material inventory Debtors Cash in bank Capital: S Arak 1/7/2001 Drawings: S Arak Creditors Purchases Purchases retums Discount on purchases Carriage on purchases Salaries Advertising costs Office expenses Delivery costs Sundry expenses Sales Commission paid / expense Rental paid / expense Additional information 1. 2. 3. 4. Closing inventory at 30 June 2002- R8 000. Packaging material used during the year- R12 000. Provision for depreciation is as follows: (c) . Shop equipment -10% per annum on net book value Office equipment - 5% per annum on cost price Advertising costs owing on 30 June 2002-R2 000. Required (a) Journalise the adjustments. [b] Prepare an income statement for the year ended 30 June 2002. Prepare a balance sheet as at 30 June 2002. R 300 000 140 000 40 000 20 000 8 000 60 000 16 000 110 000 10 000 526 000 24 000 50 000 140 000 4.000 6.000 10.000 48 000 18 000 10 000 230 16 000 22 000 360 000 10.000 40 000

Answer rating: 100% (QA)

To journalize the adjustments we need to consider the additional information provided Here are the adjustments a Journalize the adjustments 1 Closing ... View the full answer