Complete the Fixed Asset Note to the Balance Sheet from the following ledger accounts of Shadrack Enterprises as at 31 December 20.5.
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.
![TASK 4.20
Shadrack Enterprises Fixed assets note
Complete the Fixed Asset Note to the Balance Sheet from the following ledger accounts of
Shadrack Enterprises as at 31 December 20.5.
GENERAL LEDGER OF SHADRACK ENTERPRISES
BALANCE SHEET ACCOUNTS SECTION
Dr
VEHICLES
Cr
20.5
20.5
220 000 Mar
Dec
31 Asset dis osal
Balance
Jan
1
Balance
b/d
GJ
60 000
cld 160 000
220 000
31
20.6
220 000
Jan
Balance
b/d
160 000
ACCUMULATED DEPRECIATION ON VEHICLES
20.5
20.5
b/d
80 000
39 000
76 000 Mar
1
Balance
Mar 31
Dec 31
GJ
Jan
Asset disposal
Balance
3 000
Depreciation
31 Depreciation
GJ
GJ
c/d
31
Dec
32 000
115 000
115 000
20.6
Jan
1
Balance
b/d
76 000
Dr
EQUIPMENT
20.5
20.5
Balance
cid
120 000
90 000
30 000
120 000
b/d
Dec
31
Balance
Creditors control
Jan
1
June 30
CJ
120 000
20.6
Jan
1
Balance
b/d
120 000
B
ACCUMULATED DEPRECIATION ON EQUIPMENT
20.5
20.5
Dec 31
c/d
50 500 Jan
Balance
b/d
40 000
Balance
10 500
50 500
Dec
31
Depreciation
GJ
50 500
20.6
1
Jan
Balance
b/d
50 500
NOMINAL ACCOUNTS SECTION
DEPRECIATION
20.5
20.5
Mar 31
Dec 31
Profit and Loss a/c
GJ
45 500
3 000 Dec
32 000
GJ
31
Acc dep on vehicles
Acc dep on vehicles
Acc dep on equipment GJ
GJ
10 500
45 500
45 500
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