Based on the following reconciling itens between the bank balance and the book balance an November 30 of thecurrent year of Rolex Company: • Balance per the bank statement in November 1 showed the amount of P 80,161 • Deposits of P 5,460 made in November 30 were not yet reflected • Checks issued but not yet paid amounted to P 12,148 • Bank collection of P 13,500 was notrecorded in the books • Bank service charges for the month amounted to P 1,200 • A check deposited in the amount of P 5,000 was marked by the • DAIF (drawn against insufficient fund) A deposit for P5,400 was erroneously recorded by the bank as P4,500
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. HOW MUCH IS ADJUSTED BOOK BALANCE?
2. HOW MUCH IS THE BOOK BALANCE ON NOVEMBER 1?
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