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 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 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 are recorded in the general journal. No journal narrations or folio numbers are required. You are not required to journalise the closing transfers. Sales RetumsN225 340.87PurchasesN3S20 389.76Purchases retumsN476 540.32Service incomeN510 987.45Rent IncomeN663 200 00Interest on debtors accountsN7$320.48Credit losses recoveredN82478.90Telephone and faxN917 430 22Credit LossesN109 650 55Office refreshmentsN116540.76Cleaning materialsN125 340 98StationeryN134 498.27Railage Inwards1976 54N14InsuranceN15SO 600.00ElectricityN1612 356.45Interest on creditors AccountsN175478.67AdvertisingNI826 754.23N19156 430.28Wages and SalariesEntertainmentN2014 S60.70FuelN2134 569.432 246 939.122 246 939.12Additional Information:Provide for depreciation as folowsOn moter vehicles 15% per annum on reduting balance method.On equipmienton cost. Note anew piece of equipment was purchased on1September 2019 costing R54 000. This has been recorded properly Pre-adjustment trial belance of Central Perk Fumiture Store for the year ended $1 March 2aaFol.Debit (Cred ()Statement of tnancial position sectionCapital500 000.00Drawings25 000.0082Land and buldings865 000.00Vehcles84220 987.00Equipment156 760.00Accumulated depreciation: fquipment54 320.0086(1 April 2019)Accumulated Depreciation: Vehicles22 sa0.00(1 April 2019)Bank22430.00Debtors Controt35 600.00Allowance for Credit Losses- 1 April 2019B101 780.25Petty CashB111378.98Trading inventory (1 April 2019)81227 865.43Mortgage LoanB13287 650.00Creditors ControlB1431420.00SARS(UIF/SDL/PAYE)81S23 290.65OThe pende eft ao200fol.Debit (R)Credit (RNominal accounts sectionN11167 371.07SalesSales ReturnsN225 340.87ACRO6112 Take HnIMG 6850 ipgIMG 6849. jpgdocy

Journal entry is the procedure to record, correct, and adjusts the transaction. It always affects…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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

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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