4. (a) Why we pass closing entries? Prepare the necessary closing entries of 123

toys from the ledger balances given as Fees Earned 100,000, Salaries expense

25,000, Wages expenses 15,000, Rent expense 12,000, Utilities expense 8,000,

Capital 250,000, Drawing 4,000

4 (b) Pass the following adjusting entries in general journal:

i. Depreciation for the office equipment amounted Rs. 25,000 for

building 25,000

ii. Fees earned but unbilled amounted Rs. 16,000

iii. Salaries earned by employees of Rs.29,000 have not been paid or

recorded.

iv. Supplies used during the month worth Rs. 13,000