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Following Trial Balance has been extracted from the books of Lexounde Ltd. as on 31 December 2019:
| ACCOUNTS | DEBIT
| CREDIT
|
| Cash in hand | 3,400 | |
| Bank Balance | 18,660 | |
| Stock 1st Jan 2018 | 46,000 | |
| Purchase and purchase returns | 150,200 | 600 |
| Freehold premises | 38,600 | |
| Incidental trade expenses | 840 | |
| Insurance | 1,640 | |
| Audit fees | 280 | |
| Commission received | | 3,300 |
| Bank overdraft | | 4,000 |
| Interest on Bank Overdraft | 200 | |
| Trade Debtors | 36,000 | |
| Trade Creditors | | 34,670 |
| Wages | 25,000 | |
| Salaries | 14,000 | |
| Capital | | 114,000 |
| Drawings | 5,000 | |
| Income tax | 1,600 | |
| Investments | 4,000 | |
| Discount allowed and received | 6,300 | 4,600 |
| Sales return and sales | 550 | 201,350 |
| Bills receivable | 3,200 | |
| Office furniture | 3,050 | |
| Rent | 4,000 | |
| | 362,520 | 362,520 |
Following month end adjustments need to be incorporated in the above trial balance:
Stock at 31 December 2019 is 52,000
Write off 5% depreciation on freehold premises and 10% on office furniture
Unpaid wages are 4,200
Insurance to the extent of 200 relates to the year 2019 2020
Charge interest on capital @ 5% and 300 on drawings.
Rent is payable at the rate of 400 per month.
Required:
Prepare month end adjustment journals for the month of 31 December 2019
Prepared adjusted trial balance as on 31 December 2019
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