This session we will have a look at the comprehensive exercise. Now the comprehensive exercise strategy back in the manual. You can print the comprehensive exercise and you can print all the worksheets. In this session I will show you exactly how to do the comprehensive exercise. Don't write anything down at the end they will be a step by step instruction on how to do the comprehensive exercise. First of all, let me look to see what I gave you.

I gave you a trial balance as at the 30th of November 2008. The financial year of it MBT starts on the first of January 2018 things on the 31st of December 2009. So the financial year is 12 months and it started on the first of January 2009 and it will end on the 31st of December 2009. And I gave you the trial balance as the 30th of November 2009. And then we request account for all the transactions in the subsidiary journals and Ledger's prepaid income statement and balance sheet for December 2009. So I gave you a trial balance as at the 30th of November.

Now the trial balance as totals for the period in November 2009. This will form the opening balances in the general ledger on the first of December 2008, you will have to copy all of these titles, the income statement items and the balance sheet items to the general ledger. So in the general ledger you will account for the opening balances, it will be a sales account on the first 12 2008 total brought forward 1367589 credit cost of sales first on the 12 that will grow to it. Now 918976 David and from the trial balance you can see it was the credit 1367589 and the debit 919976. So, you will copy all of this to the general ledger and that will form the opening balances For the same all of us again for sales, cost of sales and all the ibeacons then I gave you a asset register, you can see the asset register, start off with cost of sales and the accumulated depreciation as at the first of January 2009.

We calculate the depreciation to the 30th of November and the accumulated depreciation on the first of January and the depreciation that was calculated to the city as of November is the accumulated depreciation on the 30th of November. So, it started off 50,000 Rand opening balance plus the depreciation and that is the accumulated depreciation of 95. I double three So we have cost of sales 250. If you look at the trial balance matter vehicles costs 250. We have accumulated depreciation on four double 3958 double three and you will have to calculate the depreciation to the end of December 2008. You can see the depreciation was calculated for 11 months.

That was from the first of January 2009 to the 30th of November 2008. On the last item Yeah, that was calculated only 14 months. And that is indication that this machine was bought in February. And remember, we only account for depreciation for the period that we have the asset So, assume that that asset was bought on the first of February 2009. And to the 30th of November is in months. So, you will account for depreciation for 10 months.

Now you will have to account for depreciation to the end of December. So that will be 12 1212 and 11 and I gave you a bank reconciliation for November. Now, the cash book balance on the 30th of November 18789 the bank and a balance here of 18789 that was the cash book balance. The cash book balance on the 30th of November will form the opening balance in the bank reconciliation for December So on the first of December 200, right, that will be happening minutes. And I gave you some outstanding items, asked any chicken outstanding deposit and there was a data's balance. We had worked on Yama, 45 896 and 81 760.

That will be this 12765 right. In the trial balance, they did this control on to 7658. That is a David. You will have to copy that to the data's ledger. Data ledger FUPA. Now you can see it to David, first of December, and it's brought 445 896 and four yamo first of December.

Brute force 81762 so that 45 plus the 81 is the title of the data is 12765 right and that is a debit in the trial balance, see there is the debit. So, in the debtors ledger that will be a debit that will be a debit because David's will be equal to the summary that I gave you and then we have the creditors balance 78967 go to the trial balance 78967 nets are created and you will have to copy that to the creditors ledger so increase this ledger bt x suppliers first of the symmetries and balance brought forward 789673 In that you have the debits and the credits correct when you open the data's and the creditors ledger and I gave you all the transactions for December and you will have to go and accounted for it in the different journals sales in the sales journal purchases in the purchase journal, cash book procedure, no cash payment journal, petty cash and there was additional information in the sales journal, they will be the sales general for December, you will account for the transactions, you will title it, you will prepare a general journal and we will copy this general journal to the general ledger.

We will account for the purchases for December capital purchases from the different columns, calculated columns and you will prepay. General Journal that will be copied to the general ledger. We will account for the cash book receipts and that was the receipts that was issued and then there was interest received. Now we have not generated a receipt for interest received. That is a transaction that appears on the bank statement on the bank statement. bank statement this interest received so you will have to cancel in the cash receipt journal.

Before you account for any transactions in the cash book, you need to check on the bank reconciliation for the outstanding checks and ask them deposits and to see if any of those items appear on the bank statement. There was outstanding deposit non 7863 and an outstanding check on a 760. So, on the bank statement, there is the non 7863. So you will mark it off. So you will not account for that in this in this cash book journals. That was accounted for in November, and it only went through the bank in December.

And you will account for the cash book time in general that's only checks that we issued and then there was to increase that appeared on the bank stipend. And we have not generated checks for those interest. The first one was the bank charges expense that is charged by the bank and a installment on the land for everbank. And there is a debit order. We do not generate a document for that. So, that will appear on the bank statement and you will have to account for it, you will generate a general journal and that will be copied to the general ledger.

Account for the petty cash petty cash receipt journal generate the general general generate the general general for the petty cash payment journal and that will be copied to the general ledger. And then this the additional information, the additional information will be accounted for in the general journal and in the database general. First one, provide interest at 24% per year on the line provide 2000 rent against the provision for future expenses. In the trial balance, there was a loan for everbank learn hundred thousand mean. Now the interest for the year was 24% times 24% equals 24,000. Up until November we have accounted for 22,008 22,008 have been accounted for.

So, we need to account for 2008 all you can calculate 100,000 times 24% times one over 12 that is the interest for December equals 2000. So, you will have to account for it means the interest paid and they will be a balance sheet account provision for future expenses is a liability, you will have to cancel against that account. So, in the general journal you will accounts for interest paid and provision for future expenses 2000 2000. And I gave you some more information. Yama has been liquidated and the balance needs to be written off as bad debt. That will be a data's journal.

Then there was a receipt one three t was a deposit from was a new client that also did this journal. So there was a receipt and we allocated the receipt incorrectly, and you need to reallocate the receipt to the correct data. There was stationery that was bought out of petty cash was for telephone expense. So that was an expense that was allocated incorrectly. You need to allocate it correctly. And then there was gross profit on stock that was sold 25% so you need to have a look at the sales December.

So let's assume the sales was one to five, the gross profit is 25% 25 125 and tg gross profit was 25 million. So if you deduct 25 friends, the cost of sales will be under drained cost of sales. Remember that was the stock that we sold in December. Now that is still in the stock account. And you need to reallocate it to the cost of sales account. You can also calculate it by doing the following one to five times 100 divided by 125 and that is 100 that is a cost of sales.

So you will do all the journals and the data's corrections in the data's journal. So this is stationary that you reallocated cost of sales. That was so provision for salaries and then you have the data's journal, it was Yama that you had to remember to account for the VAT and you will write it off to bad dates and there was another transaction we allocate, I did this receipt and then you will do the asset register you will calculate depreciation now for the period up until December. So, this new depreciation accumulated depreciation now, you can see the depreciation for many vehicles was 50,000 up until November, that title was 45 I double 3.33. So, the difference is the depreciation for December and you will do a journal in general journal that will be copied to the general ledger. So, the accumulated depreciation increase to 416 6.67 and they will be accumulated depreciation for office equipment and for plant and machinery and that will be a canvas for against the depreciation account and ending in the cash book receipts, they was received 1342 the value of 48,200 grand from Chora for a motor vehicle that was sold.

So, that might a vehicle that we have in the general in the asset register was sold. So, you need to account for that so, that one was sold and you will prepare a general journal and that will be assets sold carry over to profit and loss account. So, you will have to take out the cost you have to take out the cumulated depreciation and take it to the profit and loss account. You need to Do a bank reconciliation at the 31st of December. The opening balance on the first of December will be the closing balance on the bank reconciliation for November. So the closing balance on the 30th of November will be the opening balance on the first of December.

Let's have a look at the bank reconciliation of November. They want the cash book balance at the end of November 18789 and that will form the opening balance. On the reconciliation for December, you will have your cash procedure cash payments. We'll have a new cash book balance and you will reconcile the cash book receipt journal and the cash book payment journal with the bank statement and you will have to account for absent checks and outstanding deposits. You will get a new title and this title is called bank statement balance and it needs to balance with the bank statement. So the bank statement balance at the end of December 1449 157 and the bank statement balance on the bank reconciliation 14494 157 and you will account for all the database transactions from the sales journal.

And from the cash receipt journal, you will account for it in the datas ledger for wooper and Yama and you will also account for the datas journal that you did and you will get an ID data's control balance sign with the creditors ledger you will account for the transactions in the purchase journal, the cash book payment journal and the creditors journal. So you will account for the purchases from the purchase journal and the payments from the cash book payment journal and you will get a new title for creditors and you will do the general ledger. So you already accounted for the opening balance. It was from the province that I gave you and in all these journals that you prepaid, it was the sales journal. Remember we did the general journal sales but it is control and you have to copy and paste that to the general ledger 131750 so in the general ledger, you will have a title the from the sales journal 131 7.0 point II and you will copy those general journals that you generated in the sales journal the purchase journal, the cash book journals, petty cash journals, the January journal and D data's journal, you will copy and paste it over here and you will get a new title for all the accounts and you will take the titles from the general ledger and you will copy it to the trial balance in the income statement section and the balance sheet section.

If we have a look at Bank there was the balance 18781 and this bank 18781 you will have datas control 1450 to zero. It is Ctrl 1450 to zero and this data's control needs to balance with the data's ledger. So in your data's ledger, you will have a total 145020 and that is how the data is all made up. So wooper owes you money young Money is opposed to money invest big money in that's the total and that will reconcile with the amount in the trial balance on facilities here and from the trial balance, you will prepare an income statement, sales cost of some gross profit, other income, that would be a total income, careful the expenses and you'll have your profit for the balance sheet account for all the assets and you will account for equity and liabilities. And you will do I like to the financial statements, fixed assets whenever you have a carrying value on the first of January 2008.

That was the cost an accumulated depreciation and you movement for the additions disposals and depreciation and you have a carrying value in the end of the session. 2008 and the title day needs to balance with the title on the balance sheet. And what I did was I created all the journals for you and I prepared the general ledger and the data's ledger. So all that you need to do is you need to fill it in. That'll it generate the general journal copy to the general ledger. This exercise will take you approximately five to six hours.

So guarantee the exercise and then in session nine, we will discuss the solution. See you guys in session.