Question 4

Mr Van Wyk has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 28 February 2017, the end of his recent financial year. Sales 116,056

Purchases 33,530

Accumulated for depreciation 4,472

Inventory 01.03.2016 6,825

Insurance 12,520

Heating and Lighting 4,275

Motor Vehicle Cost 22,360

Office Rent 11,250

Salaries and wages 2,545

Bad debts 255

Trade Debtors 19,298

Petrol motor vehicles expense 1,475

The following additional information as at 28 February 2017 is available

a) Inventory at the close of business was valued at N$ 13,020

b) Insurance have been prepaid by N$ 2,520

c) Salaries and wages is accrued by N$ 45

d) Monthly office rent of N$ 1,250

e) A debtor Mrs.Selma owed N$ 150. The amount was written off as bad debts irrecoverable

f) Petrol for motor vehicles was prepaid by N$ 250

g) Motor vehicles depreciation at 20% p.a straight line, no residual value.

h) Heating and Lighting monthly rate of N$ 285

Required:Use general journal to journalise the additional information and Prepare post adjusted trial balance as at 28 February 2017. (Narratives is not required).