2.1 Process the above transactions through a table such as the one below. The transaction of 1March 2021above is used as an example. Record amounts without brackets to indicate an increase; amounts in brackets to indicate a decrease; and 0 (a zero) for no effect. Example of the table required: Date Assets R Equity Liabilities R Account Debited Асcount Mar. R Credited 1eg 70 000 70 000 Bank Capital- Angle
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.
![Required:
2.1
Process the above transactions through a table such as the one below.
The
transaction of 1March 2021above is used as an example.
Record amounts
without brackets to indicate an increase; amounts
in brackets to indicate a
decrease; and 0 (a zero) for no effect.
Example of the table required:
Date
Assets R
Equity
Liabilities R
Account Debited
Account
Mar.
R
Credited
1eg
70 000
70 000
Bank
Capital- Angle
2.2
Calculate the amount owing by clients at 31 March 2021.
2.3
Will the amount owing by the clients be shown as a current or non-current
asset.
Motivate your answer.
2.4
Calculate the amount of interest payable on 1 April to Kind Bank.
2.5
Name the source document that we would use to record the services
rendered
to Alice Angle's clients on credit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84378dfe-e7d6-4f18-a0d0-73276e51ffb5%2Ff37fdd78-81e1-426b-b8a3-e70e4cceb4e9%2Fzn7q8t7_processed.png&w=3840&q=75)
![Alice Angle is an architect who set up her own on 1 March 2021. She supplied the
following information about transactions for the first month ended 31 March 2021:
2021
Transaction
March
1 eg.
Alice deposited capital R70 000 into the business bank account.
1
Paid R5 000 as rent for March 2021.
2.
Alice contributed equipment valued at R75 000 that she was using at home. The
equipment was fully paid for personally by Alice.
Additional equipment was purchased for R35 000 and paid through Alice's personal
bank account.
6 The business obtained a loan of R150 000 from Kind Bank and deposited into the
_business bank account. The loan is repayable in 3 equal annual instalments. The first
instalment is payable on 31 March 2023. Interest is payable monthly at 7% per year beginning
on 1 April 2021.
10
Purchased a vehicle for business purposes from Fast Cars Ltd for R220 000. Paid a
deposit equal to 20% of the purchases price by making an electronic finds payment
(EFT). The balance will be paid in 36 monthly instalments of R6 320 beginning 4
June 2021.
11
Purchased consumable material for R3 150 and paid by EFT.
25
Provided services to clients on credit for a total of R96 600.
31
Issued receipts to clients for total of R76 600 in payment of the client's accounts
Paid salaries of R15 000 by making direct deposits into the employee's bank
accounts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84378dfe-e7d6-4f18-a0d0-73276e51ffb5%2Ff37fdd78-81e1-426b-b8a3-e70e4cceb4e9%2For8fdqq_processed.png&w=3840&q=75)
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