Exercise: The balance sheet of the company "MHS" at the beginning of the financial year N presents the following items: Elements Technical installations Transportation equipment office mat Goods Clients Bank Box TOTAL Amounts Elements 225,000 Capital 95,000 Fixed Asset Suppliers 45,000 38,900 Suppliers 12,100 22,000 3,500 441,500 TOTAL • 03/01, Withdrawal from the bank to fund the cash register: 2,000 DH • 05:01, Purchase on credit of goods: 2,500DH . 08:01, Acquisition of a typewriter paid by check: 2,500 DH The operations carried out by the company during the first month of the year can be summarized as follows: . 01/12, Bank debit advice, bank charges and services: 250 DH • 13/01, Payment of the chartered accountant's fees: 1,000 DH by bank transfer. • 16/01, Sales of goods: against cash: 17,500 DH: against check: 22,000DH en credit: 8,000 DH. • 17/01, Payment of the costs of the staff employed: 8,500 DH by bank check. • 18/01, Regulation of operating property suppliers: 12,500 DH by bank cheque. . 01/19, Payment of goods transport costs: 1,000 DH in cash. • 01/21, Collection of receivables from customers: 6,100 DH by check and 1,500 DH in cash. Amounts 350,000 X . 01/22, The rent for the buildings is paid by check: 4,500 DH. • 01/26, The company paid in cash: 350 DH for renting equipment. Required work: Record all the operations for the month of January in the appropriate accounting journal. You can use Excel. 31,500 441,500
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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