Journalize the following transaction, post in the ledger and prepare a trial balance. January 1, 2022 Furnitures 5,000.00 Machinery 10,000.00 Inventory 4,000.00 Cash in hand 550.00 Cash in Bank 7,450.00 Amount Due from RR Co. 1,000.00 Amount due from XX Co. 2,000.00 Amount due to Rama Ltd. 4,500.00 Amount due to Casey LLC 2,000.00 Amount due to SYM Trading 1,500.00 Capital Account 22,000.00 02-Jan Purchased goods from Ajay on account 4,500.00 03-Jan Sold goods for cash 2,500.00 04-Jan Sold goods on credit to XX Co. 2,100.00 05-Jan Paid for postage 500.00 06-Jan Received cash from RR Co. 1,000.00 07-Jan Paid telephone charges 700.00 08-Jan Cash sales 1,500.00 15-Jan Paid salaries by cheque 2,500.00 16-Jan Received cheque payment from XX Co. 2,000.00 20-Jan Paid rent by cheque 1,500.00 22-Jan Issued cheque to Rama Ltd 2,500.00 24-Jan Paid cash to SYM trading 1,500.00 Note: Sales price at 40% mark-up. ALSO NOTE: Please put VAT as applicable if it requires percentage it's 5%
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.
| Journalize the following transaction, post in the ledger and prepare a |
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| January 1, 2022 | |||
| Furnitures | 5,000.00 | ||
| Machinery | 10,000.00 | ||
| Inventory | 4,000.00 | ||
| Cash in hand | 550.00 | ||
| Cash in Bank | 7,450.00 | ||
| Amount Due from RR Co. | 1,000.00 | ||
| Amount due from XX Co. | 2,000.00 | ||
| Amount due to Rama Ltd. | 4,500.00 | ||
| Amount due to Casey LLC | 2,000.00 | ||
| Amount due to SYM Trading | 1,500.00 | ||
| Capital Account | 22,000.00 | ||
| 02-Jan | Purchased goods from Ajay on account | 4,500.00 | |
| 03-Jan | Sold goods for cash | 2,500.00 | |
| 04-Jan | Sold goods on credit to XX Co. | 2,100.00 | |
| 05-Jan | Paid for postage | 500.00 | |
| 06-Jan | Received cash from RR Co. | 1,000.00 | |
| 07-Jan | Paid telephone charges | 700.00 | |
| 08-Jan | Cash sales | 1,500.00 | |
| 15-Jan | Paid salaries by cheque | 2,500.00 | |
| 16-Jan | Received cheque payment from XX Co. | 2,000.00 | |
| 20-Jan | Paid rent by cheque | 1,500.00 | |
| 22-Jan | Issued cheque to Rama Ltd | 2,500.00 | |
| 24-Jan | Paid cash to SYM trading | 1,500.00 | |
| Note: Sales price at 40% mark-up. | |||
| ALSO NOTE: Please put VAT as applicable if it requires percentage it's 5% | |||
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