case of & SIUC Tepang company, repair is an income, so it will appear on the credit side Trial Balance. JOURNAL LEDGER AND TRIAL BALANCE 39 Journalise the following transactions, post them into Ledger and prepare a Trial Balance. 2015 September 1 Started business with 50,000, paid into Bank 20,000. 2 Bought furniture for 5,000 and Machinery for 10,000. 3 Purchased goods for 14,000. 6 Sold goods for 8,000. 8 Purhased goods from Malhotra & Co. 11,000. 10 Paid telephone rent for the year by cheque 500. 11 Bought one typewriter for 2,100 from Universal Typewriter Co. on credit. 15 Sold goods to Keshav Ram for 12,000. 17 Sold goods to Rajesh Kumar for 2,000 for cash. 19 Amount withdrawn from bank for persona! use 1,500. 20 Withdrew from bank for business use 3,500. 21 Received cash from Keshav Ram 11,900, discount allowed 100. 22 Paid into bank 5,800. 23 Bought 50 shares in XY and Co. Ltd. at 7 60 per share, brokerage paid ? 20.
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.
![Ans. R1,04,420].
Trial Balance.
2015
September 1 Started business with 50,000, paid into Bank 20,000.
2 Bought furniture for 5,000 and Machinery for 10,000.
3 Purchased goods for 14,000.
6 Sold goods for 8,000.
8 Purhased goods from Malhotra & Co. 11,000.
10 Paid telephone rent for the year by cheque 500.
11 Bought one typewriter for 2,100 from Universal Typewriter Co. on credit.
15 Sold goods to Keshav Ram for 12,000.
17 Sold goods to Rajesh Kumar for 2,000 for cash.
19 Amount withdrawn from bank for persona! use 1,500.
20 Withdrew from bank for business use 3,500.
21 Received cash from Keshav Ram 11,900, discount allowed 100.
22 Paid into bank 7 5,800.
23 Bought 50 shares in XY and Co. Ltd. at 60 per share, brokerage paid 20.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83126103-16cc-40fb-b544-e1cfd86ce6fb%2Fb232905c-4d91-4e36-821e-a41b93c446c7%2Fkc0catwh_processed.jpeg&w=3840&q=75)
![ACCOUNTING PROCES
25 Goods worth 1,000 found defective were returned to Malhotra & Co. and the balan
of the amount due to them was settled by issuing a cheque in their favour.
28 Sold 20 shares of XY and Co. Ltd. at 65 per share, brokerage paid ? 20.
28 Bought goods worth 2,100 from Ramesh and supplied them to Suresh at 3,000.
30 Suresh returned goods worth 100, which in turn were sent to Ramesh.
30 Issued a cheque for 1,000 in favour of the landlord for rent for September.
30 Paid salaries to staff ? 1,500 and received from travelling salesman 2,000 for good
sold by him, after deducting his travelling expenses 100.
30 Paid for: Charity 101; Stationery 450; Postage 249.
[Journal Total 1,83,370 ; T.B. Total 7 82,300].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83126103-16cc-40fb-b544-e1cfd86ce6fb%2Fb232905c-4d91-4e36-821e-a41b93c446c7%2Frqxdh4o_processed.jpeg&w=3840&q=75)
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