Exampke (2) Jassim Contracting started its operations on 5/1/2017, whch folowed the operations that took place during the manth of May 2017 1- Jossim invested $ 12,000 in cash in the company -2 Equipment was purchased on the account in the amount of $ 1800. 3- An amount of $ 360 was pad tor insurance on the company against fire tor a year. 4- Buy stationery for $ 600 in cash. 5- Buying a car for $ 7,500, paying $ 1,500 of it and the rest on the account 6- Paying $ 720 for the rent for the month of May. 7- Pay an amount of $ 170 for the electricky fee. 8- Sending invoices to the company's customers in the amount of s 8500 for the services provided to them. -9 Payng s 800 of the equipment purchased. -9 Receive an invoice for advertisements submitted to the company in the amount of $ 160. - 10 Payng the salaries of workers $ 1,250. -11 Colkecting $ 2000 from accounts receivable. -12 Jassim withdraws $ 500 for his personal use. -13 The stationery was inventoryed at the end of the month and only $ 350-14 was left The insurance for the month of May has been proven. -15th Requred 1- Recording the above operations in the general journal 2- Pasting the entries to the general ledger regkster.
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.
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