Question 1 (Prepare adjusting entries in general journal format, adjust trial balance then only draw up the financial statements) Dr Cr Purchases and sales 92,800 157,165 Cash at bank 4,100 Cash in hand 324 Capital account 1 March 2013 11,400 Drawings 17,100 Office furniture 2,900 Rent 3,400 Wages and salaries 31,400 Discounts 820 160 Accounts receivable and accounts payable 12,316 5,245 Inventory 1 March 2013 4,120 Allowance for doubtful debts 1 March 2013 405 Delivery van 3,750 Van running costs Bad debts written off 730 174,375 174,375 Notes: (a) Inventory 28 February 2014 2,400. (b) Wages and salaries accrued at 28 February 2014 340. Rent prepaid at 28 February 2014 230. Van running costs owing at 28 February 2014 72. Increase the allowance for doubtful debts by 91. (1) Provide for depreciation as follows: Office furniture 380; Delivery van 1,250. Required: Draw up the statement of profit or loss for the year ending 28 February 2014 together with a state- ment of financial position as at 28 February 2014. 615