Preamble: The following Trial Balance was prepared from the books of Adom Trading Enterprise at the end of the 2022 financial year. Capital Inventory 1/1 Purchases Sales Sales returns Accounts Purchases returns Trade receivables Trade payables Bank Cash Cash discount allowed Cash discount received Land and Buildings Accumulated depreciation: Buildings 1/1 Motor Vehicles Accumulated depreciation: Vehicles 1/1 Wages and salaries. Electricity Motor running expenses Office repairs and maintenance Provision for doubtful debts Insurance premium Drawings Cash proceeds from sale of vehicle Carriage inwards Medium - Term Loan Trial Balance DR GH 4,800.00 190,000.00 7,500.00 25,700.00 60,800.00 1,060.00 2,560.00 185,000.00 75,000.00 25,000.00 5,550.00 8,300.00 2,900.00 10,500.00 30,250.00 3,980.00 638,900.00 CR GH 162,500.00 296,400.00 6,800.00 23,400.00 5,100.00 47,000.00 38,000.00 1,500.00 8,200.00 50,000.00 638,900.00 Additional information: 1. Inventory at the end of the year was valued at GH6,500. 2. The loan was contracted three years ago and annual interest of 5% is payable at the end of each year. 3. At the end of the year, electricity owing was GH500 and insurance prepaid was GH4,500. 4. Full year's depreciation is charged on assets during the year of acquisition and none in the year of disposal. Depreciation is to be charged as follows: Buildings 2% using the straight-line method. Motor Vehicle 20% using the reducing balance method. 40% of the cost of land and buildings is for land. Page 34 5. During the year, a vehicle that was bought five years ago at the cost of GH20,000 was sold for GH8,200. 6. During the year, the sole owner, withdrew goods worth GH1,500 for personal use. 7. Mr. Ohiani who owes the business has been declared bankrupt and the balance on his account GH5,700 is to be written off. The provision for doubtful debts is to be set at 5% of trade receivables. 8. An additional contribution of GH1,000 by the proprietor into the business bank account has not yet been recorded in the books of account. Required Activities: (e) Pass the journal entries needed to post the necessary end-of-year adjustments to the relevant ledger accounts. (f) Post the necessary adjusting entries to the relevant ledger accounts and balance off the accounts. (g) Prepare an adjusted trial balance. (h) Prepare a worksheet showing the necessary adjustments and the adjusted trial balance.

Preamble: The following Trial Balance was pepared from the books of Adom Trading Enternrise al the end of the 2022 financial vear. Additional informativen 1. Inventory at the end of the your was valusd at GHe6,500. 2. The loan was coectacted three years ago and antmal interest of 5% ts puyable at the cnd of each year 3. At the end of the year, electricity ow ing was GHd 500 and insurance prepaid was GHe4,500. 4. Foll year's dqveciation is chargod on assets during the year of acquaisition and none in the year of divposal. Depreciation is to be charged as followx: Buildings 2% peing the strigh-line mothod. Meor Vehicle 20\%s waing the reducing halance mothod 40N of the cost of land and buildings is for land. 5. During the year, a vhicle that was bough five yeaes ago at the coe of GHe 20,000 was sold far CiHes. 200. 6. During the year, the sole conter, withdrew goods worth GHC1, 500 for persoel use. 7. Mr. Ohiani who ewes the business has boen declared banknopt and the balanee on his acsount GAlte5,700 is to be wrinen off. The provision for deubeful debts is to be set at 5\%s of trade receivibles. 8. An additional contribution of GHeL,000 by the proprictor inte the business bunk wecomint has not yef beea recoeded in the books of account. Required Aetivities: (c) Pass the journal cetries neeled to poot the necessary end-of-year adjusiments to the selevant ledger accounts. (f) Post the necessary adjusting entries to the relkvant ledger mecounts and bulmen off the accounts (g) Pripare an adjusted trial bulance (h) Prepure a worksheet sbowing the necesxary adfustments and the adjusted trial balance