Date Account Name (Naration) Post Ref. Debit $ Credit $ 2021 5 April Cash 100 20 000 Share Capital (Issued Shares for cash) 970 20 000 1 Motor Vehicles 715 425 000 Cash 100 5 000 Bank Loan 800 420 000 1 (Purchased Bus) 2 2 Prepaid Insurance 620 5 600 3 Cash 100 5 600 4 (Paid Annual Insurance Policy) 1 100 4 Office Equipment Cash (Purchased Office Equipment) 5 Uniforms 5 710 6 100 1 100 7. 8. 496 150 Accounts Payable |(Purchased Unifoms) 5 Prepaid Rent 9 800 150 1 622 800 2 Rent Expense 486 200 3 Cash 100 1 000 (Paid rent for 5 months) 7 Accounts Receivable 4 5 610 16 879 6 Service Revenue 201 16 879 (Invoiced Customers) 10 Advertising 7 8 403 200 9 Accounts Payable 800 200 (Purchased Advertising Expense) 10 Cleaning Supplies 1 408 100 Accounts Payable (Purchased Cleaning supplies) 11 Workers Compensation 2 800 100 3 4 432 1 000 5 Cash 1 000 6 (Paid Workers Compensation) 17 Interest Expense 437 2 500 8 Interest Payable 332 2 500 9 17 Salaries 477 1 520 Salaries Payable (To record accrued salaries) 1 804 1 520 2 3 20 Accounts Receivable 610 896 4 Service Revenue 201 896 5 (Invoiced Customers) 6 23 Repairs & Maintenance 401 1 167 7. Cash 100 1 167 8 (Paid for Repairs) 9 26 Accounts Payable 800 200 Cash 100 200 1 (Paid accounts payable) 28 Cash 100 16 879 3 Accounts Receivable 610 16 879 (Collected cash from customers on account) 30 Fuel Expense 4 5 400 796 6 Cash 100 796 7. (Paid for Fuel) 8 30 Bank Loan 337 6 872 9 Cash 100 6 872 (Payment being made to bank for bus purchase) 30 Depreciation - Motor Vehicles 1 416 3 852 Accumulated Depreciation - Motor Vehicles (To record depreciation expense) 2 716 3 852 3 4 30 Dividends 960 900 5 Cash 100 900 6 (Payment of Cash Dividend)
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.
Post them to the ledger accounts; include narrations and dates. Then prepare the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
