Adjustments and additional information
Stocktaking on February revealed the following inventories:
Trading inventory R
Stationery R
The telephone account for February R was due to be paid on March
A debtor who was declared insolvent paid R which represented of her debt. The balance of her account must now be written off.
The provision for bad debts must be decreased to R
Rent has been received up to March Note: The rental was increased by R per month with effect from November
The insurance total includes an annual premium of R that was paid for the period June to May
Provide for outstanding interest on the mortgage loan for February
Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on
September
A payment for the annual service of a motor vehicle was not recorded, R
Provide for depreciation as follows:
On equipment at pa on cost
On vehicles at pa using the diminishing balance method. Note: A vehicle with a cost price of R was purchased on December The purchase has been recorded.
