llustration 4

The following is the Trial Balance of Mr

Bharat on 31st December, 20144
Particulars Dr. Cr. Particulars Dr. C
4,000 Bills payable
Capital 5,200 Bills Receivable 720
Sundry creditors
5,000 Returns inwards 930
Plant&Machinery
and fittings
260 Provision for doubtful debts 5
Office furniture
 I 13.31
Financial Accounting Vol.
January, 2014
Stock as on 1st 4,800 700
Motorvan 1,200 Drawings 550
Sundry debtors
Returns outwards
4,570 Rent 600
Cash in hand
40 80
Cash at bank Factory lighting and heating
650 Insurance 630
Wages 15,000 General expenses 100
Salaries 1,400 Bad debts 250
Purchases 21,350 Discount 650 370
Sales 48,000 TOTAL 58,930 58,930
Thefollowing adjustments are to be made:
) Stock on 31st December, 2014 7 5,200;
(ii) 3 months factory lighting and heating is due, but not paid 30;
(ii) 5% depreciation to be written-off on furniture;
(iv) Write-off further bad debts R 70;
(V) The provision for doubtful debts to be increased to 300 and provision for discount on debtors @ 2% to be
made;
(vi) During the year machinery was purchased for R 2,000, but it was debited to Purchases Account.
You are required to make the necessary Journal entries and prepare Trading and Profit and Loss Account and the Balance
Sheet.