Y Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up, but it does not balance On investigation, it was found that adjustments had not been taken into account Ignore VAT Trial Balance for year ended 30 April 2020 Debit Credit Statement of Financial Position Section Capital 536 200 Drawings 48 000 Fixed Deposit 50 000 Land and Buildings 600 000 Equipment 36 000 Vehicles 180 000 Loan 360 000 Creditors Control 8 000 Trading Inventory 20 000 Debtors Control 113 000 Bank (favourable) 88 750 Shortterm loan 12 200 Nominal Accounts Section Sales 445 000 Sales Returns 20 000 Cost of Sales 217 500 Interest expense 35 150 Interest Income 4 500 Telephone 6 000 Rent expense 12 000 Water and Electricity 3 000 Stationery 680 Totals 1 399 430 1 396 550 The Independent Institute of Education (Pty) Ltd 2020 Page 7 of 8 20 2020 The following adjustments for April 2020 have not been taken into account 1) A motorbike purchased for R80 000, to be used for deliveries was posted to the Land and Buildings in error and not to the Vehicles account 2) Stationery purchased for R120 cash has not yet been processed to the Stationery account (It was processed to the bank account) 3) The owner made a Capital contribution in the form of a personal cheque for R8 000, this transaction was processed to the Bank account but not to the Capital account 4) An amount of R5 000 was transferred from the business bank account to the Fixed Deposit account, the amount was taken off the bank account but not processed to the Fixed Deposit account 5) The interest income and interest expense have been included in the wrong accounts Interest income was accounted for in the interest expense account and vice versa Interest income should have a balance of R35 150 and interest expense should have a balance of R4 500 6) Sales returns of R2 000 was accidently posted to the cost of sales account and needs to be corrected Required Prepared the recommended adjustment column as part of completing the general ledger reconciliation statement Show all workings as marks will be awarded to these

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Y. Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up, but it does not balance. On investigation, it was

Y. Young is an inexperienced bookkeeper working for Camden Stores, a Trial Balance was drawn up, but it does not balance. On investigation, it was found that adjustments had not been taken into account. Ignore VAT.

Trial Balance for year ended 30 April 2020

	Debit	Credit
Statement of Financial Position Section
Capital		536 200
Drawings	48 000
Fixed Deposit	50 000
Land and Buildings	600 000
Equipment	36 000
Vehicles	180 000
Loan		360 000
Creditors Control		8 000
Trading Inventory	20 000
Debtors Control	113 000
Bank (favourable)	88 750
Shortterm loan		12 200
Nominal Accounts Section
Sales		445 000
Sales Returns	20 000
Cost of Sales	217 500
Interest expense		35 150
Interest Income	4 500
Telephone	6 000
Rent expense	12 000
Water and Electricity	3 000
Stationery	680
Totals	1 399 430	1 396 550

The Independent Institute of Education (Pty) Ltd 2020

Page 7 of 8

2020

The following adjustments for April 2020 have not been taken into account:
1)	A motorbike purchased for R80 000, to be used for deliveries was posted to the Land and Buildings in error and not to the Vehicles account.
2)	Stationery purchased for R120 cash has not yet been processed to the Stationery account. (It was processed to the bank account)
3)	The owner made a Capital contribution in the form of a personal cheque for R8 000, this transaction was processed to the Bank account but not to the Capital account.
4)	An amount of R5 000 was transferred from the business bank account to the Fixed Deposit account, the amount was taken off the bank account but not processed to the Fixed Deposit account.
5)	The interest income and interest expense have been included in the wrong accounts. Interest income was accounted for in the interest expense account and vice versa. Interest income should have a balance of R35 150 and interest expense should have a balance of R4 500.
6)	Sales returns of R2 000 was accidently posted to the cost of sales account and needs to be corrected.
Required: Prepared the recommended adjustment column as part of completing the general ledger reconciliation statement. Show all workings as marks will be awarded to these.