From the following trial balance of G Still, draw up a trading and profit and loss account for the year ended 30 September 2019, and a balance sheet as at that date. Stock 1 October 2018 41,600 Carriage outwards 2,100 Carriage inwards 3,700 Returns inwards 1,540 Returns outwards 3,410 Purchases 188,430 Sales 380,400 Salaries and wages 61,400 Warehouse rent 3,700 Insurance 1,356 Motor expenses 1,910 Office expenses 412 Lighting and heating expenses 894 General expenses 245 Premises 92,000 Motor vehicles 13,400 Fixtures and fittings 1,900 Debtors 42,560 Creditors 31,600 Cash at bank 5,106 Drawings 22,000 Capital 68,843 Stock at 30 September 2019 was 44,780.
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
Stock 1 October 2018 41,600
Carriage outwards 2,100
Carriage inwards 3,700
Returns inwards 1,540
Returns outwards 3,410
Purchases 188,430
Sales 380,400
Salaries and wages 61,400
Warehouse rent 3,700
Insurance 1,356
Motor expenses 1,910
Office expenses 412
Lighting and heating expenses 894
General expenses 245
Premises 92,000
Motor vehicles 13,400
Fixtures and fittings 1,900
Debtors 42,560
Creditors 31,600
Cash at bank 5,106
Drawings 22,000
Capital 68,843
Stock at 30 September 2019 was 44,780.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
