When preparing the Statement of financial position as at 31 December 2011 adjustments need to be made for the following:

(a) Stationery remaining unused by the year-end is £5,400

(b) Rent income account includes £6,000 relating to the period after the year-end

(c) A loan given an employee is reported at £4,500 after wrongly crediting to that account an amount of £200 received as interest on the loan

(d) As at the year-end salary accrued and insurance prepaid amount to £22,500 and £4,800 respectively 

The effect of making these adjustments would be to include in the Statement of financial position an additional:

Transcribed Image Text:

Current asset a £14,900 b £9,500 c £28,500 d £10,400 Current liability £22,500 £33,900 £14,900 £28,500