Part D: Year-end adjustments
You are required to process the year-end adjustments provided to you.
All adjustments should be processed at end of the financial year (Period 12).
On 01 June 2020, the directors declared a dividend on N$0.25 per share on all
outstanding ordinary shares.
The Receiver of Revenue estimated Income Tax at N$210 490, this amount will only be
paid in the next financial period.
OK Furnitures complained about an invoice amount on his statement that was
outstanding for three months, his reasoning was that he never bought items worth that
amount. After further investigations, it was discovered that the invoice amount was in
fact a credit sale to House & Home.
Allowance for irrecoverable debts is estimated to be N$20 000 at the end of the year.
An inventory count of stationery revealed that stationery valued at N$10 590 was still
on hand at 30 June 2020.
On 30 June 2020 All office shelves were sold on account to Limpo (LIM300) for N$60
000, he paid N$35 800 and promised to pay the remaining amount in two equal
instalments starting from next month.
The balance amount outstanding on Ellerines account could not be recovered anymore
as the debtor was declared insolvent on 31 December 2019, the firm managed to
recover a plant & machinery worth N$24 000 and the remaining amount was written off
as an expense. The company have an obligation to dismantle the plant after its useful
life of 5 year and the cost amounts to $10 000. The average interest rate is 10.5%.
The amount paid for water and electricity was for the period until 30 April 2020.
Advertising cost paid was for the period until 31 July 2020.
Provide the necessary adjustment for interest on financial assets and financial liabilities
the financial period.
Received a cash deposit for rent on 30 June 2020 for the month of July 2020, N$5000.
Depreciation of non-current assets should be provided as follows: computer & printers
80% of depreciation should be allocated to administrative costs and 20% on cost of sales
and other non-current assets should be fully allocated to administrative costs
Required: Process the above transactions, update and print out the following reports:
1. A detailed ledger for Busy & Daughter’s (Pty) LTD.
(View – General ledger – Transaction – Detailed ledger)
Period 1 – period 12
2. Print out the following detailed ledgers.
Customers: View – Customers – Detailed ledger – By customer
Suppliers: View – Suppliers – Detailed ledger – By supplier
Period: 1 – Period 12
