From the following particulars, prepare a balance sheet of HME Sdn Bhd as at 30Jun 2022 Capital RM80,000 Goodwill RM20,000 Prepaid Expenses RM10,000 Investment RM20,000 Debtors RM6,400 Creditors RM14,200 Loan from bank RM20,000 Cash at bank RM17,200 Furniture RM5,665 mango and oil RM50,000 Outstanding Expenses RM10,000 Net profit RM21,300 General reserve RM1,000 Closing stock RM14,800 Bills Receivable RM25,000 Bills Payable RM20,000 Advance Income RM5,000 Drawings RM4,400
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.
From the following particulars, prepare a
Capital RM80,000
Prepaid Expenses RM10,000
Investment RM20,000
Debtors RM6,400
Creditors RM14,200
Loan from bank RM20,000
Cash at bank RM17,200
Furniture RM5,665
mango and oil RM50,000
Outstanding Expenses RM10,000
Net profit RM21,300
General reserve RM1,000
Closing stock RM14,800
Bills Receivable RM25,000
Bills Payable RM20,000
Advance Income RM5,000
Drawings RM4,400
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