Given an unadjusted trial balance for the company below Debi

Given an unadjusted trial balance for the company below

Debit ($) 99,850 100,000 Credit ($) 126,500 Sales Purchases Premises Cost Accumulated depreciation at 1 January 20X3 Plant 25,000 18,000 Cost Accumulated depreciation at 1 January 20X3 Wages and salaries 2,300 8,900 7,500 5,000 ent and local business tax Inventories at 1 January 20X3 Capital at 1 January 20X3 Drawin Carriage inwards Receivables Payables Bad debts written Rent Bank balance Bank loan 80,000 25,000 4,000 27,500 gs 16,000 off 5,000 2,000 18,950 30,000 300,750 300,750

Solution

Journal Entries :

Adjusted trial balance :

Date	Accounts Titles	Debit $	Credit $
1	Cost of Sales	92350
	Inventories		92350
	(5000+99850-12500=92350)
2	Wages and salaries expenses	700
	Wages and salaries payable		700
3	Prepaid rent	300
	Rent and local taxes		300
4	Interest expense	3000
	Interest payable		3000
	(30000 * 10% - 3000)
5	Bad Debts expense	550
	Allowance for Doubtful Accounts		550
	(27500 * 2% = 550)
6	Depreciation expenses	3800
	Acc. Depreciation - premises		2000
	Acc. Depreciation - plant		1800
	(premises = 100000 * 2% = 2000 & plant 18000 * 10% = 1800)