After completing vocational education, Ramachandra set up AlignedRight Company, a plumbing Problem 3.11 omvice, The business carried out the following transactions in the first two months. Jan. 1 Ramachandra invested in the company's share capital in the form of tools 2. 000 and Balance for Two Periods Journal, Ledger, and Trial cash, 21,000. 2 Took an interest-free loan from a customer, 10,000. 2 Bought a car costing 20,000 on down payment of 2,000 and gave eighteen bills payable of 31,000 each. 3 Bought tools for cash, 33,000. 5 Received advance from a customer, 79,800. 7 Provided services for cash, 3,700. 8 Billed customers for services, 7,130. 12 Provided services for advance received on January 5. 15 Bought supplies for cash, 1,810. 17 Used supplies, 1,620. 20 Collected receivables, 6,920. 24 Received advance from a customer, 1,300. 本本 27 Repaid loan, 71,000. 29 Paid salaries, 76,310. Paid a bill payable. Paid tool repair expense, 150. Received advance from a customer, 2,400. 4 Billed customers for services, 2,940. 31 Feb. 1 6 Bought supplies on credit, 71,790. 7 Bought tools for cash, 78,000. 12 Provided services for cash, 71,910. 14 Provided services for advance received on January 24 for 990 and refunded the balance. 17 Returned defective supplies to be adjusted against future purchases, 7170. 18 Used supplies, 71,540. 22 Paid rent for January and February, 5,000. 23 Collected receivables, 2,920. Provided services for advance received on February 2 for 2,750 and collected the balance. 25 Paid petrol bill for January and February, 2,410. 27 29 Paid salaries for January and February, 7,540. 29 laid telephone expense for January and February, 1,570. Required 1. Record the January transactions in the journal. 2. Post the January journal entries to the ledger. 3. Prepare the January 31 trial balance. 4. Record the February transactions in the journal. Chapter
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.
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