Journalise the following 1. Paid Rs 5500 in cash as wages on installation of machinery. 2. Sold goods to Rama at the list price of Rs 40000 less trade discount 10% add CGST AND SGST @6% and allowed cash discount 5 %. He paid amount immediately. 3. Raman, a customer to whom goods were sold, was allowed rebate of Rs 4000 because they were of poor quality. These goods were sold charging CGST and SGST @ 6 % each. 4. Sold goods costing Rs 200000 to Ram at a profit of 25% on cost less 20% trade discount plus CGST and SGST @ 6 % each and paid cartage of Rs 500 (not to be charged from Ram).
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.
Journalise the following
1. Paid Rs 5500 in cash as wages on installation of machinery.
2. Sold goods to Rama at the list price of Rs 40000 less trade discount 10% add CGST AND SGST @6% and allowed cash discount 5 %. He paid amount immediately.
3. Raman, a customer to whom goods were sold, was allowed rebate of Rs 4000 because they were of poor quality. These goods were sold charging CGST and SGST @ 6 % each.
4. Sold goods costing Rs 200000 to Ram at a profit of 25% on cost less 20% trade discount plus CGST and SGST @ 6 % each and paid cartage of Rs 500 (not to be charged from Ram).
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