Juggling Jim's Showcase is a circus shop run by your cousin, Jim. He is at the end of his first year in business and he has heard that you have been studying accounting. Jim once took an accounting course himself, but he failed his exams and so he asks you to help him produce some accounts. He has employed a clerk to write up his books which were kept correctly. Jim then prepared the following trial balance which he cannot get to balance. He asks you to help him see where he has gone wrong. Jim's Trial Balance Premises Accumulate depreciation on premises Fixtures and fittings Accumulated depreciation on fixtures and fittings Vans Accumulated depreciation on vans Inventories at end of year Closing trade receivables Closing trade payables Bank balance (overdraft) Capital Profit for the year Loan € 150,000 40,000 4,000 20,000 2,000 12,000 (b) 10,000 2,000 240,000 € 3,000 48,000 50,000 39,000 160,000 300,000 You ascertain the following further information: A van costing €6,000 with accumulated depreciation of €600 was sold for €4,500 cash just before the year-end. This transaction has not yet been reflected in the company's books. Required (a) Produce two corrected trial balances for Jim, one before and one after incorporating adjustment for the note. Show workings using T accounts. Prepare a Statement of Financial Position for Jim's business at the end of its first year, using the Common European Format.

Q: Define the term Approval of payment requests?

A: The payment is an amount of money paid by the customer to the seller in exchange of goods and…

Q: beow the defined benefit pension plan of Equinox Co Ltd for the year 2019: Plant Assets…

A: Pension expense: It is the amount charged to a business expense, which represents the pension…

Q: Define Intrinsic value.

A:

Q: Define Goodwill.

A: Goodwill refers to the intangible asset which arises when buyer acquires the existing business.

Q: If an employer forgets to deduct Canada Pension Plan contributions from employee payments, the…

A: Pension Plan -An employer must make contributions to a fund pool designated for an employee's…

Q: Give the meaning of Trust.

A: Beneficiary/ Fiduciary Trustee  A trust has a beneficiary and a trustee. The individual who is the…

Q: Define the concept of going concern?

A: Going concern Concept: The basic principle of this concept is that business is assumed to exist for…

Q: Define credit enhancement

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Explain the term Voluntary Conveyance

A: Voluntary Conveyance: Voluntary conveyance is defined as an elective transmission of title from one…

Q: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for…

A:

Q: How might the receipt of a gift affect therelationship between the giver and the receiver?

A: Nobody ever learned whenever the tradition of presenting gifts to mark special events began.…

Q: Explain professional association (PA)?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Define Simple interest.

A: Simple interest: The amount of interest computed on the principal amount for a time period at a…

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: ? Paid the amount due on the note to Fargo Bank at the maturity date. Required: 1. Determine the…

A: If the note has not yet been converted into equity, the maturity date of the note specifies the date…

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.