The financial year end of Petrea General Dealers is 31 December. The transactions for the past

financial year ending on 31 December 2021 have been fully recorded in the ledger. The following

pre-adjustment trial balance was prepared on the 31 December 2021:

PETREA GENERAL DEALERS

PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DECEMBER 2021

Inventory (1/1/2021)	100 000
Purchases	700 000
Sales		960 000
Stationery	50 000
Rent expense	65 000
Salaries and wages	80 000
Rent income		2 600
Sundry expenses	6 350
Interest income		6 750
Trade Receivables	120 000
Trade Payables		80 000
Investment	90 000
Land and buildings	410 000
Furniture (All purchased 2/1/2021)	50 000
Capital		670 000
Drawings	48 000
	1 719 350	1 719 350

Additional information:

Inventories amounting to R160 000 were on hand at 31 December 2021.

Unused stationery amounted to R10 000 at 31 December 2021.

Rent expense amounts to R5 000 per month. The rent for January 2022 had already been paid on 28 December 2021.

Rent income according to a sub-letting agreement, amounts to R200 per month. The rent for January 2022 had already been received on 29 December 2021.

Salaries payable on 31 December 2021 amounted to R5 400.

Interest on investment is received every third month. The interest for the last quarter of 2021 was R2 250, and was only received on 10 January 2022.

Depreciation on furniture must be written off at 10% per annum according to the straightline method.

Required:

Q.4.1 Journalise the adjustments for the year ended 31st December 2021. First Voucher Number = 100. No journal narrations are required. Round off to the nearest Rand.

Q.4.2 Provide the following journals:

Close off opening inventory and purchases.

Close off closing inventory.

No journal narrations are required. Journal voucher number to be provided following on from Q.4.1 above.