Given below are the transactions related to Abdullah Enterprises for the month of March 2019. Date March | 2019, 1 Transactions | OMR Mr. Abdullah is the proprietor started business with (i) (üi) 3 Purchased Building for OMR 60,000 and paid OMR 35,000 in cash and remaining amount to be paid in the near future Cash 100,000 and Machinery 50,000 Borrow money from Bank Muscat 5 Purchased goods for cash 6 Purchased a computer for office purposes 7 Cash Sales 8 Paid electricity expenses 9 Purchased stationery for office use 10 Purchased goods from XYZ Limited I Sold goods on credit from ABC LLC Saham 12 Paid telephone charge 14 Paid the remaining OMR 25,000 for the building bought on 3nd March 15 Paid rent 17 Commission received 22 Sold goods to Mr. Ali Ibrahim for Cash 25 Paid Salary to Employees 26 Mr. Abdullah withdraw cash for personal use 15,000 25,500 900 12,000 300 240 30,000 30,000 600 900 1,800 18,000 1,800 1,500 REQUIRED TO PREPARE A. Joumal Entries B. Ledger Accounts C. Trial Balance D. Income Statement and E. Balance Sheet
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.
Step by step
Solved in 4 steps
