QUESTION 2 ADJUSTMENTS IN THE GENERAL JOURNAL (30MARKS) …
QUESTION 2 ADJUSTMENTS IN THE GENERAL JOURNAL (30MARKS) The following information appeared in the books of CD Traders. The year ended 28 February 2021. REQUIRED: Use only the information that are relevant to complete the General Journal. Show which account must be debited and which account must be credited in the General Journal of CD Traders on 28 February 2021. Take note: Journal Narrations must be shown. CD TRADERS EXTRACT FROM THE TRAIL BALANCE ON 28 FEBRUARY 2021 DEBIT CREDIT Balance Sheet accounts section Vehicles 120 000 Equipment 85 000 Accumulated depreciation on vehicles 44 000 Accumulated depreciation on equipment 35 000 Fixed deposit: ABSA Bank 50 000 Trading Stock 58 550 Loan from AB Bank 100 000 Nominal Sheet accounts section Sales 417 400 Cost of sales 310 600 Debtors allowances 3 250 Insurance 3 400 Bad debts 310 Interest on fixed deposit 840 Bank charges 405 Fee income 24 320 Consumable stores 2 780 Discount allowed 520 Interest on overdraft 1 350 Salaries and wages 44 000 Interest on loan 5 000 Rent Income 12 600 Stationery 1 350 Water and Electricity 1 650 Telephone 2 850 Advertising 3 300