Journalize the following transactions in the books Mr. Omar, post them in ledgers, and prepare the trial balance and Financial Statements. 2020 January 1 January 3 January 4 cheque. January 5 January 7 January 10 OMR 19,000 January 11 January 12 January 18 Owner started business with Cash OMR 18,500 Bought Computers for Cash OMR 5,000. Bought Furniture of OMR 14,000 through Purchase goods for cash OMR 90,000 Paid rent of office OMR 1,000 with a cheque. Bought goods from Mohammed on Credit Paid Salary for OMR 2,000 Sold goods for Cash for OMR 4,000 Sold goods to Mr. Ahmed OMR 2,000 January 19 Paid electricity bill OMR 500 in cash. Received Cash from Ahmed OMR 5,000 Money withdrawn OMR 5,000 for personal use. Deposited OMR 3,000 cash in to business bank Paid cash to Mohammed OMR 9,000 January 20 January 24 January 29 January 30 ассount.
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.
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