From the given trial balance and adjustments, prepare the adjusting entries and an adjusted trial balance, and find the profit.

1. 1 · Read each adjustment. Decide which two accounts it changes.
2. 2 · Journalise the adjustments. Dr and Cr with amounts; show workings such as 10% × 3,000,000.
3. 3 · Update every balance. Unadjusted balance ± adjustment; add new accounts such as depreciation expense and salaries payable.
4. 4 · List the adjusted trial balance. Debits and credits in two columns.
5. 5 · Total and compare. Both totals must agree.
6. 6 · Compute the profit. Total income − total expenses.
7. 7 · Comment briefly. State how much the adjustments changed profit.

Scoring tip: Show the working in brackets beside each changed balance, e.g. (900,000 + 75,000).