Adjustment on Financial Statements (Prepayment and Accruals)

• 1) Preparation of financial statements with adjustment

• 2) Cash Book + Purchase journal + Sales Journal

• 3) Depreciation + Provision for doubtful debt

• 4) Prepayment and Accruals

22.8 D. Staunton is a sole trader and you are given the following information relating to her business: / Trial balance as at 30 September 2020 Dr Cr f f Accounts receivable 73,200 Business rates 19,978 Accounts payable 62,165 Returns outwards 2,064 Drawings 34,792 Inventory as at 1 October 2019 25,967 Utilities 18,603 Wages & salaries 136,163 Sales 592,013 Equipment: at cost 188,760 Delivery vans: at cost 92,220 Equipment: accumulated depreciation at 1 Oct 2019 74,100 Delivery vans: accumulated depreciation at 1 Oct 2019 60,720 Purchases 307,847 Bank 1,337 Bad debt expense 13,192 Allowance for doubtful debts at 1 October 2019 2,240 Capital 118,757 912,059 912,059 335