Question

In: Accounting

TRIAL BALANCE R c R c Capital 43 000 00 Mortgage on premises at 8% p.a....

TRIAL BALANCE R

c

R

c

Capital

43 000

00

Mortgage on premises at 8% p.a.

10 000

00 Knowing that you have been studying bookkeeping diligently, Mr Stevenson hands you
the above trial balance asking you to make it balance, prepare a new one, and
afterwards prepare final accounts. He tells you that the closing stock is valued by him
at R4 983. Closing journals are not required.
On going through his books, you find that the purchases account total is R13 492 and
not as shown. The total sales for September which have not been posted to the ledger
amount to R2 509, and discount received of R479 has not been posted from the cash
book. Furthermore, the bookkeeper has made the common mistake of not including
the cash balance of R156 and the bank balance of R8 744.
Required
Show, by means of a statement, the adjustments necessary to balance the trial
balance. Then prepare a new trial balance.

Freehold premises

20 000

00

Machinery

15 000

00

Motor vehicles

5 627

00

Purchases

13 429

00

Returns inwards

374

00

Sundry debtors

4 682

00

Drawings

1 486

00

Sales

23 108

00

Returns outwards

421

00

Discount allowed

168

00

Sundry creditors

3 809

00

Rent receivable

600

00

Rates

465

00

Telephone

372

00

Stationery

629

00

Licences

243

00

Stock

4 782

00

Interest on mortgage

800

00

Salaries & wages

5 782

00

Carriage inwards

275

00

Petrol

387

00

Repairs to motor vehicle

462

00

70 273

00

85 628

00

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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