general journal,ledger,trading and profit and Loss and balance sheet
The following trial balance has been extracted from the ledger of J Wright,a sole trader.
TRIAL BALANCE AS AT 30 JUNE 2010
Dr Cr
Sales 138,078
Purchases 82,350
Carriage 5,144
Drawings 7,800
Rent,rates and insurance 6,622
Postage and stationery 3,001
Advertising 1,330
Salaries and wages 26,420
Bad debts 877
Allowance for doubtful debts 130
Accounts receivable 12,120
Accounts payable 6,471
Cash in hand 177
Cash at bank 1,002
Inventory as at 1 July 2009 11,927
Equipment at cost 58,000
Accumulated depreciation - equipment 19,000
Capital 53,091
216,770 216,770
The following additional information as at 30 June 2010 is available
a. Rent is accrued by $210
b. Rates have been prepaid by $880
c. $2,211 of carriage represents carriage inwards on purchases
d. Equipment is to be depreciated at 15% per annum using the straight line
method
e. The allowance for doubtful debts is estimated to be $170
f. Inventory at the close of the business has been valued $13,551
You are required to:
A. Show the general journal entries for each one of the balance day
adjustments
B. Show the closing entries in general journal
C. Post (A) and (B) to the ledger accounts.Show the following accounts
after posting:
i. The allowance of doubtful debts
ii. Bad debts account
iii. Rent,rates and insurance
iv. Salaries and wages
v. Depreciation equipment
vi. Accumulated depreciation - equipment
vii Prepaid expense account
viii. Sales
ix. Trading account
x. Profit and Loss account
D. Prepare a properly classified trading,profit and Loss statement and balance
sheet for the accounting year end 30 June 2010
