Capital A/C 50000 Brought additional capital into business Deposited into bank Purchased goods from Voltamp Manufacturing Co. LLC and got 10% trade discount Jan 2 30000 Jan 31 10000 Feb 1 15000 Sold goods to Al-Nahdah Construction And Energy Services and offered 5% trade discount Goods returned to Voltamp Manufacturing Co. LLC Cash Sales Feb 2 2000 Mar 1 25000 Mar 2 4000 Paid to Voltamp Manufacturing Co. LLC Goods returned by Al-Nahdah Construction And Energy Paid Carriage inwards Received Commission by cheque Paid Jabal Onman LLC in full settlement Received from Al-Nahdah Construction And Energy Services by cheque Sold Furniture worth of RO 2500 for RO 2800 Goods taken by proprietor for personal use Paid Wages Mar 31 3000 Apr 1 Apr 2 May 1 May 2 May 31 300 2600 9500 6000 June 1 June 2 1000 3400 July 1 July 2 July 31 Aug 1 Aug 2 4000 Withdrew from bank Goods distributed as free samples Paid Carriage Outwards Purchased goods from Galfar Engineering & Contracting LLC and got 6% cash discount 4500 250 6000 Paid to Voltamp Manufacturing Co. LLC in full settlement Sold Machinery worth of RO 4000 for RO 3600 Received from Al-Nahdah Construction And Energy Services in full settlement 2600 Sep 1 Sep 2 Oct 1 5000 Oct 2 Oct 31 Purchased Equipment from Middle West Oilfield Services Cash taken by proprietor for personal use Paid salaries through bank transfer 30000 2000 Nov 1 7500
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 1 images
