Moonlight Sports Club has 100 members each of whom paid $170 for monthly subscriptions. On April 1, 2022 the club owned fixtures valued at $15,500. Cash balance amounted to $6600 and 25 members were in arrears for March, 2022 subscriptions. Bar Stock was valued at $4000, $2000 was owed for rent, creditors for bar supplies $4,200, and debtors for bar supplies $3700 The following relates to the Club’s affairs during the month of April 2022. Subscriptions received 12,500 Payment to bar suppliers 8 900 Cash received from debtors of bar stock 11,500 Rent paid 8 000 Secretary’s salary 5 000 Cash paid for repairs to premises 2 900 Cash purchase of an office chair 6 350 Donations received 6 000 Telephone bill paid 1 500 Sale of raffle tickets 4 800 Additional Information at April 30, 2022: 1. Bar stocks on April 31, 2022 is $4,650 2. The fixtures were depreciated at the rate of 25% per annum. 3. Bar creditors at April 30, 2022, $2750 4. Debtors of bar stock at April 30, 2022 $2,200 5. Rent owing at April 30 2022 $1,500 You are required to prepare for the month ended April 30, 2022: (a) A statement showing the computation of the Accumulated Fund on April 1, 2022. (b) A Receipts and Payment accounts (c) A Bar Trading Account (d) An Income & Expenditure Account (e) A Balance sheet as at 30 April 2022
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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