Tom Johns produces and sells a variety of cakes and snacks. They also offer cake decorating classes

to aspiring bakers. The firm's PRE$-$ADJUSTED trial balance as at $31$ December $2023$ is presented

below. Pre$-$adjusted trial balance of Tom Johns as at $31$ December $2023$ Debit Credit Capital $(1$

January $2023)138000$ Retained earnings $(1$ January $2023)146820$ Bank loan $(12\%)240000$ Motor

vehicles, at cost $($see point $3$ below$)499200$ Accumulated depreciation: Motor vehicles $(1$ January

$($see point $3$ below$)192000$ Investment: Fixed deposit account $($see point $1$ below$)90000$

Inventory $(1$ January $2023)474000$ Trade receivables $($see point $4$ below$)219600$ Cash at bank $195$

$840$ Trade payables $267360$ Sales $1195080$ Fees income: Cake decorating $($see point $6$ below$)228$

$000$ Interest income $($see point $1$ below$)5250$ Purchases $351600$ Drawings $73500$ Rent expense $154$

$080$ Water and electricity expense $4200$ Advertising expense $($see point $2$ below$)12960$ Petrol

expense $122406$ HFAC$130-1-$JanJun$2024-$SA$1-$GC$-$V$\mathrm{.}2-25032024$ Salaries and wages $301800$

Telephone expense $($see point $5$ below$)5490$ Interest expense $1800024125102412510$ Assume

all the appropriate reversal entries relating to the prior year were processed correctly on $1$ January

On $30$ June $2023,$ a cheque for R$60000$ was issued to repay part of the $12\%$ bank loan. Interest

on the loan is payable half$-$yearly in arrears on the $1$ July and $1$ January. The bookkeeper correctly

recorded the payments made on $1$ January $2023$ and $30$ June $2023$ but has, however not yet accrued

for the interest on the loan that will be paid on $1$ January $2024.$ The bookkeeper has also not

recorded $($or adjusted for$)$ the following items relating to the financial year ended $31$ December

$2023$: $1.$ The fixed deposit investment was made on $1$ March $2023$ and correctly recorded. It earns

interest at $10\%$ per annum. The interest on the fixed deposit has not yet been received for the last

two months of the financial year. $2.$ The advertising expenses $($see the pre$-$adjustment trial balance$)$

include an amount of R$600$ paid for advertising to be done in January $2024.3.$ According to the non$-$

current assets register, there is only one delivery vehicle which is depreciated at $20\%$ per annum

using the straight$-$line method of depreciation. The vehicle was purchased on the $1$st of January

$2021$ and has a residual value of R$19200.$ The bookkeeper has not yet provided for this year's

depreciation. $4.$ The account of BBz Little Cakes, a debtor owing the entity R$2400,$ was declared

insolvent and must be written off as irrecoverable. $7$ HFAC$130-1-$JanJun$2024-$SA$1-$GC$-$V$\mathrm{.}2-25032024$

A telephone bill of R$1800$ relating to the month of December $2023$ was received on $5$ January

$2024$ and no entries had been made for it$.6.$ The fees income of R$228000$ includes an amount of R$6$

$000($received in December $2023),$ which relates to cake decorating classes to be provided in January

The physical count conducted on $31$ December $2023$ revealed that inventory on hand had a

cost of R$125000$ and a net realisable value $($NRV$)$ of R$100000.$ The company makes use of a Trading

Account in the General Ledger in order to calculate the gross profit. REQUIRED: Prepare the

following accounts in the General Ledger of Tom Johns for the year ended $31$ December $2023.$ Show

all your workings. $2\mathrm{.}1$ Trading Account $(6$ marks$)2\mathrm{.}2$ Profit and Loss Account $(24$ marks$)$