Adjustment: Using the trial balance prepared above, adjust the trial balance figures based on the additional information given here: The owner has used $100 cash of the business fund for his personal use. This transaction has not been recorded yet. 1. A telephone bill of $600 that was paid by cash has not been recorded yet. 2. The owner has purchased another second-hand motor vehicle that cost him $12,000 which he paid in cash. This amount has not been recorded in any accounts. 3. Show your working: Example:
Adjustment: Using the trial balance prepared above, adjust the trial balance figures based on the additional information given here: The owner has used $100 cash of the business fund for his personal use. This transaction has not been recorded yet. 1. A telephone bill of $600 that was paid by cash has not been recorded yet. 2. The owner has purchased another second-hand motor vehicle that cost him $12,000 which he paid in cash. This amount has not been recorded in any accounts. 3. Show your working: Example:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:(b)
This is the trial balance
Debit
Credit
Inventory as at 1 October 2020
Telephone expense
Commission received
11,000
28,000
30,000
Return Outwards
53,000
50,200
Purchases
Discount Received
10,000
Sales
160,000
8,000
Returns Inwards
Shop lot: at cost
Electricity expense
Mortgage
Motor vehicle: at cost
720,000
5,000
43,200
40,000
Rental Received
8,000
Capital
Cash in hand
600,000
20,000
40,000
Trade receivable
Trade payable
Administrative expenses
Drawings
57,000
19,000
20,000
961,200
961,200

Transcribed Image Text:Adjustment: Using the trial balance prepared above, adjust the trial balance
figures based on the additional information given here:
The owner has used $100 cash of the business fund for his personal
use. This transaction has not been recorded yet.
1.
2.
A telephone bill of $600 that was paid by cash has not been recorded
yet.
The owner has purchased another second-hand motor vehicle that cost
him $12,000 which he paid in cash. This amount has not been recorded
in any accounts.
3.
Show your working: Example:
For example, Item (11,000 – 2,000 + 600 – 3,000)
(Original amount – Adjustment 1 + Adjustment 2 – Adjustment 3)
Debit
Credit
Trial Balance items After Adjustment:
Example: Inventory (11,000 – 2,000 + 600 – 3,000) 6,600
(Do not need to calculate the total for Debit and Credit columns)
$
$
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