Accounting - Year end adjustments

Pre-Adjustment Trial Balance: Telephone R16 700

The Telephone account of R1 500 for February 2022 is still outstanding. The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Record the transaction by indicating the account to be debited and the account to be credited

• DR Telephone 1500

  CR Prepaid Expense 1500

• DR Telephone 16700

  CR Accrued Expense 16700

• DR Accrued Expense 1500

  CR Telephone 1500

• DR Telephone 1500

  CR Accrued Expense 1500

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Insurance R27 300

Included in Insurance is an annual premium of R12 000 taken out on 1 December 2021

Record the transaction by indicating the account to be debited and the account to be credited

• DR Insurance 9000

  CR Prepaid Expense 9000

• DR Prepaid Expense 9000

  CR Insurance 9000

• DR Insurance 18300

  CR Prepaid Expense 18300

• DR Prepaid Expense 18300

  CR Insurance 18300

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Commission Income R16 200

Commission of R2 500 for February will only be received in March.

Record the transaction by indicating the account to be debited and the account to be credited

• DR Commission Income 2500

  CR Accrued Income 2500

• DR Accrued Income 18700

  CR Commission Income 18700

• DR Accrued Income 2500

  CR Commission Income 2500

• DR Income Received in Advance 2500

  CR Commission Income 2500

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Rent Income R47 880

Rent Income increases by 10% on 1 January every year. Rent is received from the tenant one month in advance.

Calculate the rent that should be recorded in the Income Statement for the year.

• R3 600

• R3 960

• R44 280

• R43 920

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Rent Income R47 880

Rent Income increases by 10% on 1 January every year. Rent is received from the tenant one month in advance.

Show which account must be debited and which account must be credited

• DR Rent Income

  CR Income Received in Advance

• DR Income Received in Advance

  CR Rent Income

• DR Bank

  CR Income Received in Advance

• DR Income Received in Advance

  CR Bank

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Trading Stock 69 300

After the stocktake at the end of the year it was found that there was R67 900 stock on hand

Show which account must be debited and which account must be credited

• DR Trading Stock 67900

  CR Stock Loss 67900

• DR Trading Stock Surplus 1400

  CR TRading Stock

• DR Trading Stock Deficit 1400

  CR Trading Stock 1400

• DR Trading Stock 1400

  CR Trading Stock Deficit 1400

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Debtors Control 82 500; Bad Debts 3 700

A debtor owing R17 200 was declared insolvent and his estate paid out 40c in the rand.

Show which account must be debited and which account must be credited for the payment received.

• DR Bank 6880

  CR Debtors Control 6880

• DR Bank 17200

  CR Debtors Control 17200

• DR Debtors Control 6880

  CR Bank 6880

• DR Bad debts 6880

  CR Debtors Control 6880

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Debtors Control 82 500; Bad Debts 3 700

A debtor owing R17 200 was declared insolvent and his estate paid out 40c in the rand. The remainder of the debt must be written off as irrecoverable.

Show which account must be debited and which account must be credited for the irrecoverable debt.

• DR Debtors Control 17200

  CR Bad Debts 17200

• DR Debtors Control 10320

  CR Bad Debts 10320

• DR Bad Debts 10320

  CR Debtors Control 10320

• DR Bad debts 17200

  CR Debtors Control 17200

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Consumable Stores R12 000; Packing Material R13 900

After the stocktake at the end of the year there was Consumable Stores of R300 left and it was found that R13 400 Packing Material had been used during the year.

Show which account must be debited and which account must be credited for the Consumable Stores transaction

• DR Consumable Stores 12000

  CR Consumable stores on Hand 12000

• DR Consumable Stores 300

  CR Consumable stores on Hand 300

• DR Consumable Stores on Hand 12000

  CR Consumable stores 12000

• DR Consumable Stores on Hand 300

  CR Consumable stores 300

The business G11 Trading (Pty) Ltd has a financial year end of 28 February 2022.

Pre-Adjustment Trial Balance: Consumable Stores R12 000; Packing Material R13 900

After the stocktake at the end of the year there was Consumable Stores of R300 left and it was found that R13 400 Packing Material had been used during the year.

Show which account must be debited and which account must be credited for the Packing Material transaction

• DR Packing Material 13400

  CR Packing material on Hand 13400

• DR Packing Material 500

  CR Consumable stores on Hand 500

• DR Consumable Stores on Hand 13400

  CR Packing Material 13400

• DR Consumable Stores on Hand 500

  CR Packing Material 500