1. CtSha Enterprise started a new business on 1 of September 2020. You are required to record the following transaction by using accounting equation (tabular analysis format): Sept 2020 Particulars 1 Owner invested RM50,000 cash to start a photocopy business. 3 Owner purchased a photocopy machine costing RM1,000 cash. 5 Owner withdrew RM10,000 cash for personal use. 6 Owner make a loan RM20,000 from Combo Bank for the business purpose. 25 Owner paid off RM5,000 of the bank loan. 26 Owner provided photocopy service for a school total RM3,000 ; then this business had received RM2,000 cash for the service whereby another RM1,000 they will pay after the photocopies complete. 28 Owner paid RM500 cash for his employee’s salary, RM300 cash for utilities and RM200 cash for shop rental. 2. Calculate the missing figure: Owner Equity Liabilities Assets RM RM RM Business A ? 45,000 79,500 Business B 45,600 23,000 ? Business C 104,500 ? 163,700
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
1. CtSha Enterprise started a new business on 1 of September 2020. You are required
to record the following transaction by using
format):
Sept 2020 Particulars
1 Owner invested RM50,000 cash to start a photocopy business.
3 Owner purchased a photocopy machine costing RM1,000 cash.
5 Owner withdrew RM10,000 cash for personal use.
6 Owner make a loan RM20,000 from Combo Bank for the business
purpose.
25 Owner paid off RM5,000 of the bank loan.
26 Owner provided photocopy service for a school total RM3,000 ; then
this business had received RM2,000 cash for the service whereby
another RM1,000 they will pay after the photocopies complete.
28 Owner paid RM500 cash for his employee’s salary, RM300 cash for
utilities and RM200 cash for shop rental.
2. Calculate the missing figure:
Owner Equity Liabilities Assets
RM RM RM
Business A ? 45,000 79,500
Business B 45,600 23,000 ?
Business C 104,500 ? 163,700
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