Question 1: The Beaded Doll is a small business entity owned by Sally Sithole. The entity sells a range of curios from its outlet in an upmarket hotel. The following is the post-adjustment trial balance of The Beaded Doll at 30 June 20X7.

THE BEADED DOLL TRIAL BALANCE AT 30 JUNE 20X7

Debit :

Inventory - 28000 Purchases - 222000 Transport-in - 6000 Selling expenses - 35000 Administrative expenses - 95000 Distributions - 25000

Total = 411000

Credit:

Sales - 408500 Owners equity - 2500

Total = 411 000

The closing inventory has a cost of C37 000.

You are required to:

a. Prepare a statement of profit or loss for The Beaded Doll for the year ended 30 June 20X7.

b.Prepare the closing journal entries in the accounting records of The Beaded Doll.