Required:

a) Prepare the closing General Journal entries including the transfer of net profit (loss) and the transfer of drawings to capital.

b) Post the general journal entries to the Trading account and Profit & Loss account in the General Ledger.

Folio numbers are not required.

The Perpetual Inventory system is used.

The following is a Trial Balance from the ledger of Elena Sweet as at 30 June 2013 Elena Sweet Trial Balance as at 30 June 2013 Buildings Bank Accounts Receivable Accounts Payable GST Collected Sales Cost of Gpods Sold Office Equipment Inventory Delivery Expenses (outwards) Insurance Electricity Telephone Salaries Rates Rent Commission Income Capital Drawings 157,415 9,500 18,500 25,000 3,000 172,965 105,590 4,750 69,160 2,375 16,140 7,660 10,950 27,350 11,190 2,420 4,035 243,000 5,000 448,000 448,000