Mr. Salah opened the accounting analyst services in January 2020. He plans to prepare the monthly financial statement dated 31 January 2020. During this month period he completed the following transaction. January 1. Mr. Salah invested cash OMR 30,000, computer value OMR 2,000 January 2. Paid OMR 1500 cash for the rent of office space for the next 3 months. January 3. Purchased other office tools OMR 950 on credit. January 4. Hired a helper agree salary OMR 700. January 8. Completed work for a client and immediately collected cash OMR 2,80 January 10. Perform services for a client and sent a bill OMR 500 to be paid later. January 12. Purchased supplies OMR 8,000 in cash. January 14. Mr. Salah has booked an equipment for OMR 999 and the expected delivery of an equipment will be in the month of February. January 15. Received cash OMR 3000 from a client for the service to be provided for the month of February and March 2020. January 17. Pay school fees OMR 450 for the kids from his personal fund. January 18. Collected OMR 200 on the amount owed by the client. January 22. Purchased laptop and returned it back on the same day as it was defective OMR 299 January 25. Paid cash OMR 500 for liability on the office tools January 28. Owner withdrew OMR. 500 cash for personal use. January 30. Completed work for another client OMR. 600 but paid only for 50% of the amount. The remaining agree to pay later. January 31. Paid salary of helper. OMR 700. January 31. Planned to purchase additional supplies of OMR 500. January 31. Received electricity bill OMR 250. 6. Prepare the Journal entries for the month of January.
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.
Mr. Salah opened the accounting analyst services in January 2020. He plans to prepare the monthly financial statement dated 31 January 2020. During this month period he completed the following transaction.
January 1. Mr. Salah invested cash OMR 30,000, computer value OMR 2,000
January 2. Paid OMR 1500 cash for the rent of office space for the next 3 months.
January 3. Purchased other office tools OMR 950 on credit.
January 4. Hired a helper agree salary OMR 700.
January 8. Completed work for a client and immediately collected cash OMR 2,80
January 10. Perform services for a client and sent a bill OMR 500 to be paid later.
January 12. Purchased supplies OMR 8,000 in cash.
January 14. Mr. Salah has booked an equipment for OMR 999 and the expected delivery of an equipment will be in the month of February.
January 15. Received cash OMR 3000 from a client for the service to be provided for the month of February and March 2020.
January 17. Pay school fees OMR 450 for the kids from his personal fund.
January 18. Collected OMR 200 on the amount owed by the client.
January 22. Purchased laptop and returned it back on the same day as it was defective OMR 299
January 25. Paid cash OMR 500 for liability on the office tools
January 28. Owner withdrew OMR. 500 cash for personal use.
January 30. Completed work for another client OMR. 600 but paid only for 50% of the amount. The remaining agree to pay later.
January 31. Paid salary of helper. OMR 700.
January 31. Planned to purchase additional supplies of OMR 500.
January 31. Received electricity bill OMR 250.
6. Prepare the
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