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The following trial balance was extracted from the books of chapakazi Traders at 31st December 2015.

The following adjustments are taken into account:

1. Stock in trade as at 31st December, 2015 shs. 247,000 ~Closing stock
2. Wages and salaries outstanding as at 31st December 2015 shs. 2,400 ~Outstanding wages added to 92,400 in the income statement.
3. Rates paid in advance shs. 500 ~Prepaid Rates: Goes to income statement to reduce the Rates figure.
4. The provision for bad debts is required to be shs. 3,500 ~This is the closing provision balance. The difference between 3,500 and 4,000 stands and Operating revenue.
5. Provide for depreciation of furniture and fittings at the rate of 5% on cost. ~the 5% is charged to income statement.

Below is the Trial balance of Achi Harris as at 31, 2019

Notes:

1. Stock as at 31.12. 2019 shs. 42,000 ~Closing stock
2. Prepaid; wages shs. 515 and rates shs. 2,000 ~Prepaid is deducted from the respective expense on the income statement. They are also Current Asset items.
3. Owing; office expenses shs. 2,000 ~Owing is added to the respective expense on the income statement. They are also Current Liability items.
4. Create a provision for bad debts of sh.3,500 ~No provision balance in the Trial Balance. Thus, 3,500 is charged to income statement, also reduces debtors figure.
5. Depreciation on motor vans is charged on reducing balance basis at rate of 20% per unit. ~The 20% of the NBV under this method, goes to income statement as annual charge.

From the following balances prepare final accounts in respect of the year ended 31st December 2020

Additional information

1. Stock in hand as at 31st December 2020; shs 3,517,000 (including stationary stock Shs. 17,000) ~Deduct it from closing stock figure
2. Sundry expenses include stationary purchased shs. 37,000. ~Reduce sundry expenses by the stated amount, then show stationary 37,000 separately in the income statement.
3. The loan was made on 1st March of the current year, interest at the rate of 6% per annum, no provision for which has yet been made. ~Compute the 10 months interest. The figure goes to income statement and current liabilities.
4. Investment valued at shs. 1,420,000; adjust Investment Provisions accordingly. ~Treat it the way you treat provision for bad debts. Now, consider this as a closing balance.
5. Provide 20% for bad debts. ~Closing balance of the provision for bad debts
6. Write off 5% for depreciation on buildings ~The 5% is the current year charge, it goes to income statement. The cummulative figur goes to the statement of financial position.
7. Included in sundry expenses is Shs. 26,000 for legal charges in connection with the acquisition of certain buildings (included in the item of shs. 2,674,000)~The 26,000 is to be capitalized before computing current year depreciation.
8. Dividends accruing shs. 27,000; rates paid in advance shs. 20,000 and rent owing shs. 30,000
9. The opening stock included stationary stock shs. 20,000. ~Remove 20,000 from the opening stock.

This is a DEMO Question with DEMO answer

Shani cinema closes its accounts each month. At November 30, the trial balance and other information given below were available for adjusting and closing the accounts

SHANI CINEMA
TRIAL BALANCE
NOVEMBER 30, 2016

Other data:

1. Advertising expense for the month, shs. 3,750,000 Dr. Advertising exp; Cr. Prepaid Advertising.
2. Film rental expenses for the month, shs. 16,850,000 Dr. Film rental exp; Cr. Prepaid Film Rental.
3. Accrued interest on bill payable, shs. 100,000 Dr. Interest exp; Cr. Interest payable.
4. Salaries earned by employees but not yet paid, shs. 1,500,000 Dr. Salaries exp; Cr. Accrued Salaries.

REQUIRED:

1. Prepare adjusting entries at November 30, 2016
2. Prepare an adjusted trial balance

Southern Engineering Company was organized in January 2017 to provide technical services to various companies in Morogoro. The following trial balance was prepared at 30th June 2017 after six months of operations

SOUTHERN ENGINEERING COMPANY
TRIAL BALANCE
JUNE 30, 2017

Other data:

1. Office rent for one year was paid on 1st January when the lease was signed
2. Supplies on hand on 30th June amounted to shs. 2,880,000
3. Accrued interest on bill payable, shs. 600,000 at June 30
4. A number of clients obtained during the first six months of the company’s operations had made advance payments for fees to be rendered over a considerable period. As of June 30, value of services rendered and chargeable against unearned fees was shs. 114,000,000
5. Service rendered and chargeable to other clients amounted to shs. 44,400,000 as of June 30, no entries had yet been made to record the value earned by performing services for these clients (Debit fees receivable)
6. Salaries earned by staff personnel but not yet paid amounted shs. 6,000,000 on June 30

REQUIRED:

1. Prepare adjusting entries at June 30, 2017
2. Prepare an adjusted trial balance

The following trial balance has been extracted from the ledgers of Abraham who trades as a general merchant

Trial Balance as at 31st October 2017

The following additional information as at 31st October 2017 is available

1. Rent and rates have been prepaid by Shs. 750 ~deducted from rent in the income statement. Ts a current asset item too.
2. Loan interest is accrued by shs. 150 ~added to loan interest in the income statement. Ts also a current liability item.
3. Depreciation for equipment is shs. 14,145 ~this is annual depreciation charge.
4. Stock at the close of business was valued at shs. 14,521 ~closing stock

The Dar es Salaam Super Cleaners opened for business on 1st July 2018. The trial balance as at 30th September 2018 was as follows

DAR ES SALAAM SUPER CLEANERS
UNADJUSTED TRIAL BALNCE
AS AT 30th SEPTEMBER 2018

Examination of accounting records revealed the following information:

1. Insurance expired at the rate of shs 225,000/= per month.
2. Physical stock taking showed shs 400,000/= worth of supplies inventory on hand at 30^th September, 2018.
3. The company has the policy of depreciating non-current assets at the following rates: Vehicles (25%); Buildings(4%); Furniture (10%) annually. (Assume Non-current assets were acquired on 1^st July 2018).
4. Of the unearned fees, shs 4,000,000/= was earned by 30^th September 2018.
5. Accrued salaries amounted to shs 400,000/= as at 30^th September 2018.
6. The mortgage interest rate per annum is 15%.

Required:
Prepare the adjusted trial balance of Super Cleaners as at 30^th September 2018.

Ali Rashid furnished you with the following information relating to his business

Receipts and payment during 2017

• Collections from debtors after allowing discounts of shs. 150,000 amounted to shs. 5,850,000
• Collections on discounting of bills of exchange after deduction of discount of shs. 12,500 by the bank totaled shs. 612,500
• Creditors of shs. 4,000,000 were paid shs. 3,920,000 in full settlement of their dues
• Payment for freight inwards shs. 300,000
• amount withdrawn for personal use shs. 700,000
• Payment for office furniture shs. 100,000
• Investments carrying annual interest rate of 4% were purchased at shs. 9,600 on 1st July 2017 and payment made there for
• Expenses including salaries paid shs. 1,450,000
• Miscellaneous receipts shs. 50,000

1. Bills of exchange drawn on and accepted by customers during the year amounted to shs. 1,000,000, of these bills of exchange of shs. 200,000 were endorsed in favour of creditors. An endorsed bill of exchange of shs. 40,000 was dishonoured
2. Goods costing shs. 90,000 were used as advertising materials
3. Goods are in variably sold to show a gross profit of 33¹/₃% on sales
4. Difference in cash book, if any is to be treated as further drawings or introduction by Ali Rashid
5. Provide at 2.5% for doubtful debts on closing debtors