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View Full Version : How will I under the different adjustments of accounts


milka booysen
Mar 20, 2013, 05:40 AM
Example: The following info is taken from general ledger of MB Carriers on 31 Dec 2012
Sundry debtors 5300.00
consumable stores 86000
vehicles 1350000.00
equipment 950000.00
fixed dep:nedbank 80000.00
loan:nedbank 500000.00

ADJUSTMENTS
1. B.Lombard is a debtor.His account of R1500.00must be written odd as a irrecoverable
2.During the stoctaking it was found that consumables to the value of R6000.00 were on hand
3.Provision for depreciation on vehicles must be made on fixed instalment method at a rate of 10% p.a. Vehicles were bought on 1 September 2012 for R600000.00,and provision for depreciation on Equipment at 10% p.a
4.Provide for interest at 12% per year.The loan from Nedbank was raised on 1May 2012
5.Provide for interest at 10% per year on the fixed deposit made on 31 March 2012

Prepare a statement of financial position at 31 December 2012