Namwandi Traders
Trial balance as at 31 December 2015
	DR	CR
	N$	N$
Land and buildings	240,000	-
Vehicles (at cost)	100,000	-
Accumulated depreciation: vehicles	-	20,000
Furniture (at cost)	20,000	-
Accumulated depreciation: furniture	-	2,500
10% Fixed deposit: Nedbank	48,000	-
Capital	-	320,000
Drawings	16,000	-
Loan: FNB	-	16,000
Accounts receivable: control	60,000	-
Accounts payable: control	-	32,000
Inventory (1 January 2015)	80,000	-
Bank (overdraft)	-	2,700
Allowance for credit losses	-	800
Sales	-	680,000
Cost of sales	400,000	-
Sales returns	2,000	-
Rent income	-	44,000
Interest income	-	2,400
Salaries and wages	147,600	-
Stationery	800	-
Credit losses	6,000	-
	1,120,400	1,120,400

Additional information:

1. The fixed deposit was made on 1 January 2015 at Nedbank. The interest rate is 10% per annum. Interest is payable every 6 months each year.
2. The long-term loan of 15% per annum was obtained on 1 July 2015.
3. Received N$800 from a receivable whose account had been written off as irrecoverable.
4. Write off the account of a receivable of N$4 000 as irrecoverable.
5. Adjust the allowance of credit losses to 2% of outstanding debtors.
6. The rental income amounts to N$4 000 per month
7. A physical stock count revealed the following:

• Inventory on hand N$78 000
• Stationery on hand N$400

8. A vehicle worth N$60 000 was purchased on 1 March 2015 on credit from Ritters Toyota. No entries in respect of this vehicle have been taken into account.
9. Depreciation should be provided as follows:
   • Vehicles at 20% per annum on the reducing balance method
   • Furniture at 10% per annum on the straight line method

Required:

1. Prepare adjusting journal entries to account for the above adjustments
2. Prepare the adjusted trial balance of Namwandi Traders as at 31 December 2015.
3. Prepare the closing general journal entries
4. Prepare the post-closing trial balance for the year ended 31 December 2015
5. Prepare the statement of profit or loss for the year ended 31 December 2015
6. Prepare the statement of financial position as at 31 December 2015