This exercise assumes you have completed stock loss, stock gain, prepaid expenses and depreciation.
Consider the following Trial Balance at 30/6/18 of Ayanthi Traders:
Ayanthi Traders: Trial Balance at 30/6/18
Cost of sales
Accum. Deprec. Vehicle
Loan: AMP $4000 due in 12 months
Stock in transit insurance
Accum. Deprec. Off.Assets
Additional information on 30/6/18
Prepaid insurance is for 12 months and was paid on 1/9/17.
Prepaid advertising was for advertising flyers. On balance day stock of advertising flyers was $900.
Rent is $3000 per month and is paid until 31/7/18.
Write off additional bad debts of $1000 (Debtor = Dalrene).
An accurate physical stock take determines stock on hand is $75000.
Depreciation rates: office assets 20% per annum. Vehicle 25% per annum.
The Furniture was purchased on 1/3/18. It has an estimated useful life of 10 years when it is
estimated its scrap value will be around $4000.
1. Calculate any necessary balance day adjustments and complete the adj