Zodwa is a trader. She maintains a full set of accounting records. Her financial year ends on
31 July.
She provided the following information on 31 July 2017.
1 No entry has been made for $720 cash received from Brian, a credit customer. The balance of
his account is irrecoverable and should be written off.
2 A cheque for $118 was received from AL Stores whose account was written off in 2015.
3 Rent prepaid amounted to $400. One quarter of the rent for the year relates to Zodwa’s flat
above the business premises.
4 Commission receivable outstanding amounted to $150.
5 The fixtures originally cost $40 000 and are to be depreciated by 15% per annum using the
reducing (diminishing) balance method.
REQUIRED
(a) Record this information in the following accounts of Zodwa’s ledger at 31 July 2017.
Close the accounts by balancing or by making a transfer to an appropriate account.
Some entries have already been made in the accounts during the year.
Brian account
Date
|
Details
|
$
|
Date
|
Details
|
$
|
2016
|
|
|
|
|
|
Aug 1
|
Balance b/d
|
1000
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
Bad debts account
Bad debts recovered account
Rent account
Date
|
Details
|
$
|
Date
|
Details
|
$
|
2017
|
|
|
|
|
|
July 31
|
Total paid
|
5200
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
Drawings account
Date
|
Details
|
$
|
Date
|
Details
|
$
|
2017
|
|
|
|
|
|
July 31
|
Total to date
|
9650
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
Commission receivable account
Date
|
Details
|
$
|
Date
|
Details
|
$
|
|
|
|
2017
|
|
|
.............
|
................................
|
..............
|
July 31
|
Total to date
|
890
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
Provision for depreciation of fixtures account
Date
|
Details
|
$
|
Date
|
Details
|
$
|
|
|
|
2016
|
|
|
.............
|
................................
|
..............
|
Aug 1
|
Balance b/d
|
11100
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
.............
|
................................
|
..............
|
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