Activity 3.b - Identifying the similar elements between the T-Account and the Four-Column Ledger Account After journalizing entries, information can be entered into T-Accounts and/or the four-column ledger. Enter the information from the T- Account and calculate the running balance in the appropriate place in the four-column ledger to review the similarities between the two formats. Dec. 21 Dec. 28 7 30,000 16,800 28.000 13,400 8.300 Nov. 2 4,000 Nov 15 5,400 New 21 4500 Dec 1 2.000 Dec. 3 5.800 Dec 15 Cash Date Item Post. Ref. Debit 11 11 11 11 11 11 11 11 11 11 11 300 1680 2900 1450 1340 Credit 8300 5400 10700 4500 2000 5800 Account No. 101 Balance Debit HINT 29001 Credit
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.
![4:50 -
×
Accounting Cycle Tutorial
3 Comparing Formats
Nov. 1
Activity 3.b - Identifying the similar elements between the T-Account and the Four-Column
Ledger Account
Nov. 8
After journalizing entries, information can be entered into T-Accounts
and/or the four-column ledger. Enter the information from the T-
Account and calculate the running balance in the appropriate place in
the four-column ledger to review the similarities between the two
formats.
Nov. 22
Dec. 21
Dec. 28
Bol.
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Cash
39,600
16,800
28,000
14,500
13,400
70,700
Pearson ACT - Sole Pro...
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?123
8,300 Nov. 2
4,900
CHECK ANSWER
5,400 Nov. 21
10,700 Nov. 25
4500 Dec. 1
2
Nov. 15
2,000 Dec. 3
5,800 Dec. 15
Step 3: Post to Ledger
✔ RESET
→ GIF
Cash
3
Date
2016
Nov. 1
Nov. 2
Nov. 8
Nov 15
Nov. 21
Nov. 22
Nov. 25
Dec. 1
Dec. 3
OO.Ⓒ
Dec 15
Dec 21
Dec. 28 V
Item Post. Ref. Debit
J1
11
J1
J1
J1
11
J1
11
J1
J1
J1
J1
3060
1680
2800
1450
1340
Credit
7
8300
4900
5400
10700
4500
2000
5800
¹5G 4
8
HE Glossary
? HINT
Account No. 101
Balance
5
6
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Debit Credit
39601
31301
.
9
8
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![4:51
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Accounting Cycle Tutorial
3 Comparing Formats
Step 3: Post to Ledger
Meason - Me
LESSON #3B: MORE PRACTICE WITH THE T-ACCOUNT VS. THE FOUR-COLUMN
LEDGER ACCOUNT
The T-Account and the Four-Column Ledger Account
OO.Ⓒ
Remember:
• The t-account provides the basic account title, date, debit amount, credit amount, and ending balance
for each account.
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• The four-column ledger provides the same information as the t-account but adds additional detail of a
running total and post reference information.
• The ending balance should always be the same value for both the t-account and four-column ledger for a
specific account.
✔ RESET
¹5G 4
HE Glossary
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