The above information has been taken from the company’s books as at 31 December 20X7, but the following have not yet been allowed for:

(a) Rent owing but not yet paid amounting to A1,000.

(b) Insurance paid includes A3,000 which relates to next year.

(c) Audit fees not yet included and not yet paid are A1,500.

(d) Machinery and vehicles are to be depreciated by 10%.

(e) Land and buildings have been revalued at A150,000.

(f) Interest on the loans has not yet been paid.
Record the appropriate adjustments on the quadrant and draw up the balance sheet and income statement.

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2.3 Kings Cross Co. Land and buildings 110,000 Share capital 150,000 Machinery 50,000 Retained profits 5,000 Vehicles 25,000 Loans (10%) 20,000 Inventory at end of the year 30,000 Creditors 50,000 Debtors 35,000 Cash at bank 10,000 260,000 225,000 Cost of goods sold 90,000 Sales 160,000 Wages 20,000 Rent, insurance, sundry expenses 15,000 125,000 160,000