5. Record the following transactions for the month of November 2020 in the general joumal and post to the appropriate ledger account and balance all the accounts the prepare the trial balance as November 2020. Nov 1 Started business with RM6,000 in the bank 2 Bought goods on credit from Ab Bhd RM 390 and XY Trading RM710 5 Cash sales RM240 7 Paid rent by cheque RM30 9 Paid sundry expenses by cheque RM200 11 Sold goods on credit to Mina RM80 and Chee RM1,150 16 Paid wages by cash RM45 18 Returned goods to AB Bhd RM20 and XY Trading RM35 19 Goods returned by Mina RM10 and Chee RM50 Bought motor van on credit from Tan Ching Motor RM8,000 24 Paid AB Bhd RM250 and XY Trading RM400 by cheque 27 Received a loan of RM500 cash from Aman 29 Received a cheque from Mina RM70 and Chee RM600 30 The owner deposited a further RM1,000 into a business bank account
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.
Step by step
Solved in 2 steps with 3 images
