1. You are provided with General Ledger with balances (in part (b) below) of E. Norman after balance day adjustments have been posted.

1. Prepare the closing general journal entries.

General Journal - E. Norman
Date	Particulars	Debit	Credit
30/6	Sales	44,593
	Trading		44,593
	Balance transferred to Trading A/c
30/6	Trading	21,118
	Cost of goods sold		21,118
	Balance transferred to Trading A/c
30/6	Trading	23,475
	Profit & Loss		23,475
	Gross profit transferred to P&L A/c
30/6	Commission Revenue	807
	Profit & Loss		807
	Balance transferred to P&L A/c
30/6	Profit & Loss	5,624
	Freight Outwards		475
	Insurance		228
	Electricity		532
	Telephone		190
	Salaries		2,470
	Rates		238
	Discount Allowed		1,007
	Rent		484
	Balances transferred to P&L A/c
30/6	Profit & Loss	18,658
	Capital		18,658
	Net profit transferred to Capital A/c

1. Post entries to the General Ledger.

General Ledger
Trading Account
Date	Details	Folio	Debit	Credit	Balance
30/6	Sales	N/A		44,593	44,593 CR
	Cost of goods sold	N/A	21,118		23,475 CR
	Profit & Loss	N/A	23,475		0
Profit and Loss Account
Date	Details	Folio	Debit	Credit	Balance
30/6	Trading	N/A		23,475	23,475 CR
	Commission Revenue	N/A		807	24,282 CR
	Delivery Expense	N/A	475		23,807 CR
	Insurance	N/A	228		23,579 CR
	Electricity	N/A	532		23,047 CR
	Telephone	N/A	190		22,857 CR
	Salaries	N/A	2,470		20,387 CR
	Rates	N/A	238		20,149 CR
	Discount Allowed	N/A	1,007		19,142 CR
	Rent	N/A	484		18,658 CR
	Capital	N/A	18,658		0
Buildings (ASSET)
Date	Details	Folio	Debit	Credit	Balance
30/6	Balance	N/A			31,483 DR
Bank (ASSET)
30/6	Balance	N/A			1,900 DR
Accounts Receivable (ASSET)
30/6	Balance	N/A			3,700 DR
GST Paid (ASSET)
30/6	Balance	N/A			2,000 DR
Accounts Payable (LIABILITY)
30/6	Balance	N/A			5,000 CR
GST Collected (LIABILITY)
Date	Details	Folio	Debit	Credit	Balance
30/6	Balance	N/A			2,600 CR
Sales (REVENUE)
30/6	Balance	N/A			44,593 CR
	Trading		44,593		0
COGS (EXPENSE)
30/6	Balance	N/A			21,118 DR
	Trading	N/A		21,118	0
Office Furniture & Equipment (ASSET)
30/6	Balance	N/A			950 DR
Inventory (ASSET)
30/6	Balance	N/A			13,832 DR
Freight Outwards (EXPENSE)
30/6	Balance	N/A			475 DR
	Profit & Loss	N/A		475	0
Insurance (EXPENSE)
30/6	Balance	N/A			228 DR
	Profit & Loss	N/A		228	0
Electricity (EXPENSE)
30/6	Balance	N/A			532 DR
	Profit & Loss	N/A		532	0
Telephone (EXPENSE)
30/6	Balance	N/A			190 DR
	Profit & Loss	N/A		190	0
Salaries & Wages (EXPENSE)
30/6	Balance	N/A			2,470 DR
	Profit & Loss	N/A		2,470	0
Rates (EXPENSE)
30/6	Balance	N/A			238 DR
	Profit & Loss	N/A		238	0
Discount Allowed (EXPENSE)
Date	Details	Folio	Debit	Credit	Balance
30/6	Balance	N/A			1,007 DR
	Profit & Loss	N/A		1,007	0
Rent (EXPENSE)
30/6	Balance	N/A			484 DR
	Profit & Loss	N/A		484	0
Commissions Received (REVENUE)
30/6	Balance	N/A			807 CR
	Profit & Loss	N/A	807		0
Capital (EQUITY)
30/6	Balance	N/A			27,607 CR
	Profit & Loss	N/A	27,607		0

I am unsure of how the Capital (Equity) journal entry is $27,607?

If you can please provide feedback