J.Moon has the following transactions at for the month of June 2020. June 1 Started business with £28,500 in the bank 2 Bought Van paying by cheque £2,100 5 Bought office fixtures £850 on credit from Office Hand Ltd 8 Bought (second) van on credit from Fast Car Ltd £3,600 12 Took £110 out of the bank and put it into the cash till 15 Bought office fixtures paying by cash £60 19 Paid Fast Car Ltd a cheque for £3,600 21 A loan of £2,500 cash is received from F. Maurice 25 Paid £160 of the cash in hand into the bank account 30 Bought more office fixtures paying by cheque £460 Required: a. Write up the transactions in the general ledger of S. Keyes b. Balance up the accounts and extract a Trial Balance as at 30 June 2020.
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.
J.Moon has the following transactions at for the month of June 2020.
June 1 Started business with £28,500 in the bank
2 Bought Van paying by cheque £2,100
5 Bought office fixtures £850 on credit from Office Hand Ltd
8 Bought (second) van on credit from Fast Car Ltd £3,600
12 Took £110 out of the bank and put it into the cash till
15 Bought office fixtures paying by cash £60
19 Paid Fast Car Ltd a cheque for £3,600
21 A loan of £2,500 cash is received from F. Maurice
25 Paid £160 of the cash in hand into the bank account
30 Bought more office fixtures paying by cheque £460
Required:
a. Write up the transactions in the general ledger of S. Keyes
b. Balance up the accounts and extract a
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