LEO TRADERS

PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020

	Debit (R)	Credit (R)
Balance sheet accounts section
Capital		660 000
Drawings	56 000
Land and buildings	503 000
Vehicles at cost	369 000
Equipment at cost	264 000
Accumulated depreciation on vehicles		211 000
Accumulated depreciation on equipment		151 000
Fixed deposit: Tab Bank (10% p.a.)	79 000
Trading inventory	60 000
Debtors control	70 000
Provision for bad debts		4 000
Bank	51 000
Cash float	1 000
Creditors control		74 000
Mortgage loan: Tab Bank (16% p.a.)		132 000
Nominal accounts section
Sales		830 000
Cost of sales	317 000
Sales returns	5 000
Salaries and wages	235 000
Bad debts	7 000
Stationery	2 000
Rates and taxes	20 000
Motor expenses	12 000
Marketing expenses	9 000
Telephone	17 000
Electricity and water	26 000
Bank charges	4 000
Insurance	6 000
Interest on mortgage loan	20 000
Interest on fixed deposit		6 000
Rent income		65 000
	2 133 000	2 133 000

Adjustments and additional information
Stationery, cost R300, was taken by the proprietor for her personal use. No entry has been made for this.
Physical stocktaking on 29 February 2020 reflected the following inventories:
Trading inventory Stationery	R57 000 R200
H. Larkens, a debtor, was declared insolvent. Received an amount of R1 500, which represented 60% of his debt, from his insolvent estate. This has been recorded. The balance of his account must now be written off.
The provision for bad debts must be decreased by R500.
Rent income amounts to R5 000 per month. Make the necessary adjustment.
The water and electricity account for February 2020 has been paid, R2 500, but the payment was erroneously posted to the telephone account.