Question

Can someone please let me know if I have done these adjustments right and if you can explain the last adjustment with the disposal of the vehicle

Adjustments:

• Interest owing on loan $4000

• Wages owing to employees $10000

• Additional bad debts to be written off (inclusive of GST) $5500

• Provision for doubtful debts to be equal to 4% of debtors

• Commission revenue yet to be received $5100

• The provision for long service leave is to be increased by 3% of all salaries and wages

• Provision for annual leave is to be doubled

• Advertising paid in advance $5000

• Equipment is being depreciated @15% p/a using the reduced balance method depreciation

• Motor vehicles are being depreciated @20% p/a using the straight line method of depreciation

• On April 1 2014 one of the vehicles (BMW) Registration number STR333 was traded for $25000 on a new Volvo costing $66000 GST Inc, the balance payable over 3 years financed by a loan from ACG Finance. The BMW was purchased on 1 January 2010 from Smart car sales with an expected life of 5 years with no residual payment

• Cost price INC GST $120000

• Delivery costs INC GST $5000

• Registration and insurance $2500

Note: the disposal of the vehicle has not been recorded in the accounts

Stock on hand @ 30 June 2014 is $100000

	Advertising
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		55,000
	30/06/2014	paid in advance		5000
	Bad Debts
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		12,000
	30/06/2014	addition bad debts		4,950
	30/06/2014	GST collected		550
	Bank
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			30000
	30/06/2014	wages owing			10000
	30/06/2014	advertising paid in advance			5000
	Buildings
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		800,000
	Buying Expenses
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		14,800
	Cartage Outwards	Cartage Outwards
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		120,000
	Commission Revenue
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			59900
	30/06/2014	Yet to be received			5100
	Discount Expense
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		2,500
	Discount Received
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			1800
	Donations
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		5,000
	Electricity
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		40,000
	GST Payable
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			15,000
	30/06/2014	GST from bad debts			550
	Input Tax Credits
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		10,000
	Interest Expenses
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		176,000
	30/06/2014	Intrest on BL finance loan 2020		4,000
	Lease Expenses
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		6,000
	Legal Costs
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		75,000
	Loan BL Finance due 2020
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			600,000
	30/06/2014	Intrest			4000
	Mortgage
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			400000
	Motor Vehicle Expenses
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		50,000
	Office Salaries
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		40,000
	30/06/2014	3% for provision for LSL		1,200
	Managers Salaries
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		100,000
	30/06/2014	3% for provision for LSL		3,000
	Wages
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		80,000
	30/06/2014	wages owing		10,000
	30/06/2014	3% for provision for LSL		2,400
	30/06/2014	provision for AL		25,300
	Office Stationery
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		4,000
	Petty Cash Advance
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		500
	Provision for annual leave
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			25,300
	30/06/2014	provision for AL to double			25,300
	Provision for long service leave
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			15000
	30/06/2014	3% of wages and salaries			6600
	Purchases
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		360,000
	Purchases returns and allowances
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			27000
	Rates and Taxes
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		15,250
	Rent Revenue
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			300000
	Sales
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			900000
	30/06/2014	Commission yet to be received		5,100
	Stock
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	1/07/2014 12:00 am	balance c/f		120,000
	Creditor control
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			50000
	Debtor control
		General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		80,000
	30/06/2014	Provision for doubtful debts			400
	30/06/2014	bad debt to write off			4950
	Provision for Doubt full debts
		General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			2800
	30/06/2014	4% of debtor control		400
	Equipment
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		900,000
	30/06/2014	depreciated at 15%			135,000
	Accumulated Depreciation - Equipment
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			315000
	30/06/2014	depreciated at 15%		135,000
	Drawings
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f		63,750
	Motor Vehicle
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	Balance c/f		320,000
	30/06/2014	depreciated at 20%			20409
	Accumulated Depreciation - Motor Vehicle
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			168000
	30/06/2014	depreciated at 20%		20,409
	Capital
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
	30/06/2014 12:00 am	balance c/f			540000
	General Ledger
	Date	PARTICULARS	Ref	DEBIT	Credit	Balance	DR/CR
				3,667,109	3667109