Enter the following transactions in a general journal for the month of July 2019 1st Started business with ¢9,750 cash 2nd Received a loan of ¢12,000 from Barnes by cheque 3rd Bought a computer for cash ¢6,000 5th Bought a camera on credit from Kodak ltd ¢4.020 8th Took ¢2,000 out of the bank and put it in the cash till 15th Paid part of Barnes’s loan by cheque ¢5,000 17th Paid Kodak Ltd ¢4,020 by cheque 24th Final payment of Barnes’s loan by cash 31st Bought a printer on credit from F. Jones ¢2,550
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.
Enter the following transactions in a general journal for the month of July 2019
1st Started business with ¢9,750 cash
2nd Received a loan of ¢12,000 from Barnes by cheque
3rd Bought a computer for cash ¢6,000
5th Bought a camera on credit from Kodak ltd ¢4.020
8th Took ¢2,000 out of the bank and put it in the cash till
15th Paid part of Barnes’s loan by cheque ¢5,000
17th Paid Kodak Ltd ¢4,020 by cheque
24th Final payment of Barnes’s loan by cash
31st Bought a printer on credit from F. Jones ¢2,550
Step by step
Solved in 2 steps
