Question 2 (Prepare adjusting entries in general journal format, adjust trial balance then only draw up the financial statements) Inventory 1 September 2014 8,200 Purchases and sales 26,000 40,900 Rent 4,400 Business rates 1,600 Sundry expenses 340 Motor vehicle at cost 9,000 Accounts receivable and accounts payable 1,160 2,100 Bank 1,500 Provision for depreciation on motor vehicle 1,200 Capital at 1 September 2014 19,700 Drawings 11,700 63,900 63,900 At 31 August 2015 there was: Inventory valued at cost prices 9,100 Accrued rent of 400 Prepaid business rates of 300 The motor vehicle is to be depreciated at 20 per cent of cost Required: 1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 2015. 2 A statement of profit or loss for the year ending 31 August 2015, together with a statement of financial position as at that date. Question 2 (Prepare adjusting entries in general journal format, adjust trial balance then only draw up the financial statements) Inventory 1 September 2014 8,200 Purchases and sales 26,000 40,900 Rent 4,400 Business rates 1,600 Sundry expenses 340 Motor vehicle at cost 9,000 Accounts receivable and accounts payable 1,160 2,100 Bank 1,500 Provision for depreciation on motor vehicle 1,200 Capital at 1 September 2014 19,700 Drawings 11,700 63,900 63,900 At 31 August 2015 there was: Inventory valued at cost prices 9,100 Accrued rent of 400 Prepaid business rates of 300 The motor vehicle is to be depreciated at 20 per cent of cost Required: 1 The adjustments to the ledger accounts for rent and business rates for the year to 31 August 2015. 2 A statement of profit or loss for the year ending 31 August 2015, together with a statement of financial position as at that date