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

7.	The insurance total includes a premium of R2 400 that was paid for the period 01 December 2019 to 30 November 2020.
8.	An amount of R200 appeared in the February 2020 bank statement for cash deposit fees. This amount was not recorded by the bookkeeper.
9.	The investment in fixed deposit was made on 01 March 2019. Provide for the outstanding interest.
10.	Provide for outstanding interest on loan, R1 120.
11.	Provide for depreciation as follows:
11.1	On vehicles at 20% per year using the diminishing balance method.
11.2	On equipment at 10% per year on cost.