Question

Question 3 NAN ENTERPRISES TRIAL BALANCE AS AT 31 DECEMBER 2010 130 000 11 000 50 000 81 000 14 000 14 000 100 000 82 000 37 200 90 000 500 000 283 300 Capital Drawings Mortgage loan (8%) Land and buildings Furniture and equipment Bank Inventory (1 January 2010) Debtors control Fixed deposit Creditors control Sales Purchase Interest income Rent income Freight charges on purchases Advertising Insurance Credit losses Administration expenses Property rates and taxes Interest expenses Water, electricity and telephone Salaries 800 2 400 5 000 9 800 5 000 2 600 30 000 9 600 3000 10 000 76 000 773 200 773 200 Additional information relating to the year-end adjustments is as follows • On 1 August 2010 N&N Enterprises rent out a part of their premises to Oli Traders for 12 Months a cheque for R2 400 was received on that date for the entire year's rent The interest earned on the fixed deposit amounted to R1 060, but was not yet received An amount of R3 500 of the insurance expenses was prepaid for next year The advertising expense includes a payment of R2 400 made to Count News Magazine for Advertisements to be published from January 2011 Salaries eamed by employees but not yet paid at 31 December 2010 amounts to R800 (N.B Please turn over Question continues)

Using the information given above record the necessary year
Prepare a post adjust trial balance for N & N enterprises as at 31 December 2010

Answer 1

N & N ENTERPRISES
TRIAL BALANCE AS AT 31 DECEMBER 2010
			Adjustment		Adjusted
	Debit	Credit	Debit	Credit	Debit	Credit
Capital		130,000				130,000
Drawings	11,000				11,000
Mortgage loan (8%)		50,000				50,000
Unearned Rent income				1,400		1,400
Salaries Payable				800		800
Land and buildings	81,000				81,000
Furniture and equipment	14,000				14,000
Bank	14,000				14,000
Inventory (1 January 2010)	100,000				100,000
Debtors control	82,000				82,000
Interest Receivable			1,060		1,060
Prepaid Insurance			3,500		3,500
Prepaid Advertisement			2,400		2,400
Fixed Deposit	37,200				37,200
Creditors control		90,000				90,000
Sales		500,000				500,000
Purchase	283,000				283,000
Interest income		800		1,060		1,860
Rent income		2,400	1,400			1,000
Freight charges on purchases	5,000				5,000
Advertising	9,800			2,400	7,400
Insurance	5,000			3,500	1,500
Credit losses	2,600				2,600
Administration expenses	30,000				30,000
Property rates and taxes	9,600				9,600
Interest expenses	3,000				3,000
Water, electricity, and telephone	10,000				10,000
Salaries	76,000		800		76,800
	773,200	773,200	9,160	9,160	775,060	775,060