cash 500 bank 26500 debtor 54700 capital 49940 motor van 10000 creditors 38000 accural 3000 prepayments 4000 sale 15000 purchase 10000 salaries 5000 depreciation 1500 discount allowed 300 rent 5000 long term loan 21800 drawiings 25500 sale returns 1000 puchase returns 1500 other creditor 19900 rental in
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.
furniture and fitting 10000
petty cash 640'
cash 500
bank 26500
debtor 54700
capital 49940
motor van 10000
creditors 38000
accural 3000
prepayments 4000
sale 15000
purchase 10000
salaries 5000
discount allowed 300
rent 5000
long term loan 21800
drawiings 25500
sale returns 1000
puchase returns 1500
other creditor 19900
rental income 10500
prepare a
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