SRI LANKA INC.

During the audit of Sri Lanka Inc., for the past calendar year, one of the junior members of the auditor’s staff was asked to
“take a look” at the Miscellaneous Expense account.

Miscellaneous Expense

2016     Debit   Credit   Balance

31-Jan Automobile registration P 600 P P 600
Study and appraisal of office by SGV 1,500 2,100
Sundry expenses 3,400 5,500
28-Feb Rent of public warehouse . 800 6,300
Sundry expenses 2,300 8,600
Traveling expenses of Company
31-Mar 800 9,400
President
Accounts receivable write-off .. 3,100 12,500
Sundry expenses 2,600 15,100
1-Apr Interest 4,000 19,100
Legal fees . . 20,000 39,100
- Sundry expenses . 3,200 42,300
11-May Directors’ fees . 500 42,800
Income tax additional assessment 15,200 58,000
Contribution to Barangay 5,000 63,000
Sundry expenses 3,900 66,900
30-Jun Directors’ fees .. 500 67,400
Interest 3,000 70,400
Sundry expenses 4,100 74,500
1-Jul Interest 4,000 78,500
Repainting of building 6,000 84,500
Sundry expenses 4,200 88,700
1-Aug Rental of special office machines 88,700
for 3 months 3,000 91,700
Payment on repairs of aircon system 5,000 96,700
Sundry expenses 4,400 101,100
15-Sep Damages - accident, company car 700 101,800
Directors’ fees 500 102,300
30-Sep Sundry expenses 4,600 106,900
1-Oct Interest 4,000 110,900
Legal fees 7,000 117,900
Sundry expenses 4,900 122,800
Basketball tickets 100 @ P5.00 500 123,300
1-Nov Directors’ fees 500 123,800
Sundry expenses 5,100 128,900
23-Dec Office Christmas party 700 129,600
Expenses re-stock dividend 2,000 131,600
Sundry expenses 5,500 137,100

Required:

Analysis and Adjustment of the Miscellaneous Expense account.