Question 2 The trial balance and additional information were extracted from the accounting records of Princess Traders on 28 February 2019, the end of the financial year. PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2019 Debit (N$) Credit (N$) Statement of Financial Position accounts section Capital 375 000 Drawings 30 000 Land and buildings 285 000 Vehicles at cost 210 000 Equipment at cost 150 000 Accumulated depreciation on vehicles 120 000 Accumulated depreciation on equipment 84 000 Fixed deposit: Ben Bank (9% p.a.) 45 000 Trading inventory 38 655 Accounts receivable 44 400 Allowance for credit losses 2 250 Bank 18 545 Cash float 2 200 Accounts payable 41 670 Mortgage loan: Ben Bank (15% p.a.) 75 000 Nominal accounts section Sales 471 975 Cost of sales 135 000 Sales returns 6 000 Salaries and wages 130 500 Credit losses 4 200 Stationery 6 840 Rates and taxes 17 850 Motor expenses 30 000 Repairs 5 385 Telephone 10 155 Electricity and water 15 185 Bank charges 1 885 Insurance 19 470 Interest on mortgage loan 6 000 Interest on fixed deposit 3 375 Rent income 39 000 Totals 1 212 270 1 212 270 Adjustments and additional information 1. The following items were on hand at the financial year end according to a physical count: Trading inventory N$37 055 Stationery N$260 2. Rent has been received for the period 01 March 2018 to 31 March 2019. 3. Provide for outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 December 2015 and it matures on 30 November 2019. 4. An amount of N$5 250 is owing for interest on loan. 5. Write off the account of debtor, B. Lee, who owed N$400. 6. Adjust the allowance for credit losses to 5% of accounts receivable. 7. Rates and taxes account includes a payment of N$12 000 made to the municipality for the period 01 July 2018 to 30 June 2019. 8. Repairs to the building, N$5 000, was erroneously debited to Land and buildings account. 9. The proprietor used N$250 from the cash float to purchase personal items for herself. No entry was made for this transaction. 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. using the fixed instalment method. Note: Equipment, cost price N$20 000, was purchased on 01 September 2018. The purchase has been recorded. On vehicles at 20% p.a. on the diminishing balance. 10.2 On vehicles at 20% p.a. on the diminishing balance. Required Use the trial balance and additional information to prepare: Question 2 The trial balance and additional information were extracted from the accounting records of Princess Traders on 28 February 2019, the end of the financial year. PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2019 Debit (N$) Credit (N$) Statement of Financial Position accounts section Capital 375 000 Drawings 30 000 Land and buildings 285 000 Vehicles at cost 210 000 Equipment at cost 150 000 Accumulated depreciation on vehicles 120 000 Accumulated depreciation on equipment 84 000 Fixed deposit: Ben Bank (9% p.a.) 45 000 Trading inventory 38 655 Accounts receivable 44 400 Allowance for credit losses 2 250 Bank 18 545 Cash float 2 200 Accounts payable 41 670 Mortgage loan: Ben Bank (15% p.a.) 75 000 Nominal accounts section Sales 471 975 Cost of sales 135 000 Sales returns 6 000 Salaries and wages 130 500 Credit losses 4 200 Stationery 6 840 Rates and taxes 17 850 Motor expenses 30 000 Repairs 5 385 Telephone 10 155 Electricity and water 15 185 Bank charges 1 885 Insurance 19 470 Interest on mortgage loan 6 000 Interest on fixed deposit 3 375 Rent income 39 000 Totals 1 212 270 1 212 270 Adjustments and additional information 1. The following items were on hand at the financial year end according to a physical count: Trading inventory N$37 055 Stationery N$260 2. Rent has been received for the period 01 March 2018 to 31 March 2019. 3. Provide for outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 December 2015 and it matures on 30 November 2019. 4. An amount of N$5 250 is owing for interest on loan. 5. Write off the account of debtor, B. Lee, who owed N$400. 6. Adjust the allowance for credit losses to 5% of accounts receivable. 7. Rates and taxes account includes a payment of N$12 000 made to the municipality for the period 01 July 2018 to 30 June 2019. 8. Repairs to the building, N$5 000, was erroneously debited to Land and buildings account. 9. The proprietor used N$250 from the cash float to purchase personal items for herself. No entry was made for this transaction. 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. using the fixed instalment method. Note: Equipment, cost price N$20 000, was purchased on 01 September 2018. The purchase has been recorded. On vehicles at 20% p.a. on the diminishing balance. 10.2 On vehicles at 20% p.a. on the diminishing balance. Required Use the trial balance and additional information to prepare: Question 2 The trial balance and additional information were extracted from the accounting records of Princess Traders on 28 February 2019, the end of the financial year. PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2019 Debit (N$) Credit (N$) Statement of Financial Position accounts section Capital 375 000 Drawings 30 000 Land and buildings 285 000 Vehicles at cost 210 000 Equipment at cost 150 000 Accumulated depreciation on vehicles 120 000 Accumulated depreciation on equipment 84 000 Fixed deposit: Ben Bank (9% p.a.) 45 000 Trading inventory 38 655 Accounts receivable 44 400 Allowance for credit losses 2 250 Bank 18 545 Cash float 2 200 Accounts payable 41 670 Mortgage loan: Ben Bank (15% p.a.) 75 000 Nominal accounts section Sales 471 975 Cost of sales 135 000 Sales returns 6 000 Salaries and wages 130 500 Credit losses 4 200 Stationery 6 840 Rates and taxes 17 850 Motor expenses 30 000 Repairs 5 385 Telephone 10 155 Electricity and water 15 185 Bank charges 1 885 Insurance 19 470 Interest on mortgage loan 6 000 Interest on fixed deposit 3 375 Rent income 39 000 Totals 1 212 270 1 212 270 Adjustments and additional information 1. The following items were on hand at the financial year end according to a physical count: Trading inventory N$37 055 Stationery N$260 2. Rent has been received for the period 01 March 2018 to 31 March 2019. 3. Provide for outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 December 2015 and it matures on 30 November 2019. 4. An amount of N$5 250 is owing for interest on loan. 5. Write off the account of debtor, B. Lee, who owed N$400. 6. Adjust the allowance for credit losses to 5% of accounts receivable. 7. Rates and taxes account includes a payment of N$12 000 made to the municipality for the period 01 July 2018 to 30 June 2019. 8. Repairs to the building, N$5 000, was erroneously debited to Land and buildings account. 9. The proprietor used N$250 from the cash float to purchase personal items for herself. No entry was made for this transaction. 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. using the fixed instalment method. Note: Equipment, cost price N$20 000, was purchased on 01 September 2018. The purchase has been recorded. On vehicles at 20% p.a. on the diminishing balance. 10.2 On vehicles at 20% p.a. on the diminishing balance. Required Use the trial balance and additional information to prepare: