hi. kindly assist with working out/ calculations for these adjustments.

ADJUSTMENTS AND ADDITIONAL INFORMATION
1. The tenant has paid her March 2022 rent in advance. NB: the monthly rent had been increased by R500 with effect from 01 December 2022.
2. A debtor who owed the business R1 400 is insolvent. Received a dividend cheque of 68c in the Rand from the insolvent estate. The balance has to be written off.
3. Provision for bad debts must be decreased by R900.
4. Physical stocktaking on 28 February 2022 revealed the following inventories on hand: Trading inventory, R172 800. Consumables, R1 200.
5. The December 2021 telephone account of R480 was erroneously posted as electricity and water. Correct this error.
6. Maintenance includes a payment of R8 700 for maintenance work done at the proprietor’s residence.
7. Insurance includes an amount of R2 808 paid for the period 01 June 2021 to 31 May 2022.
8. The loss on sale of equipment of R3 200 has not yet been brought into account. .
9. Interest on fixed deposit for the last quarter has not yet been received.
10. Provide for outstanding interest on loan.
11. Depreciation is provided annually as follows. Make the necessary adjustment. Annual depreciation is provided as follows:
• On equipment at 12% p.a. on cost.
• On vehicle at 20% p.a. on the diminishing balance method.

 

Transcribed Image Text:

PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022 BALANCE SHEET ACCOUNTS Capital Drawings Vehicles Equipment Accumulated Depreciation: Vehicle Accumulated Depreciation Equipment Fixed Deposit: F. Bank [ 12% p.a.] Trading Inventory Debtors Control Provision for Bad Debts Bank Cash Float Creditors Control Loan: J.Bank [15% p.a.] NOMINAL ACCOUNTS Sales Cost of sales Sales return Salaries and wages Bad debts Bank charges Fee income Discount received Insurance Electricity and water Telephone Rent income Interest on loan Interest on fixed deposit Maintenance Consumables Advertising Vehicle expenses Staff health programme DEBIT 200 000 680 000 360 000 120 000 180 000 90 000 567 000 5 000 1 050 000 50 000 960 000 2600 2510 9 702 12 480 9520 37 500 24 600 6 700 38 298 39 000 30 000 6 083 700 CREDIT 2 345 000 410 000 150 000 5 900 120 000 300 000 2 070 000 550 000 12 100 109 900 10 800 6 083 700 PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022 BALANCE SHEET ACCOUNTS Capital Drawings Vehicles Equipment Accumulated Depreciation: Vehicle Accumulated Depreciation Equipment Fixed Deposit: F. Bank [ 12% p.a.] Trading Inventory Debtors Control Provision for Bad Debts Bank Cash Float Creditors Control Loan: J.Bank [15% p.a.] NOMINAL ACCOUNTS Sales Cost of sales Sales return Salaries and wages Bad debts Bank charges Fee income Discount received Insurance Electricity and water Telephone Rent income Interest on loan Interest on fixed deposit Maintenance Consumables Advertising Vehicle expenses Staff health programme DEBIT 200 000 680 000 360 000 120 000 180 000 90 000 567 000 5 000 1 050 000 50 000 960 000 2600 2510 9 702 12 480 9520 37 500 24 600 6 700 38 298 39 000 30 000 6 083 700 CREDIT 2 345 000 410 000 150 000 5 900 120 000 300 000 2 070 000 550 000 12 100 109 900 10 800 6 083 700

Answer rating: 100% (QA)

1 Rent has increased by 500 from December 21 Assume monthly rent from decemberx Monthly rent before ... View the full answer