nstruction: Do its general ledgers, trial balance, and worksheet Date Particulars Debit Credit May 1 Purchases 50,000 Accounts payable 50,000 (To record purchase of inventory) May 2 Account receivables 40,000 Sales revenue 40,000 (To record credit sales) May 5 Accounts payable 2,000 Purchase returns 2,000 (To record purchase return) May 9 Cash 39,200 Sales discount (40,000 x 2%) 800 Account receivables 40,000 (To record cash collection from customers) May 10 Accounts payable 48,000 Cash 47,040 Purchase discount (48,000 x 2%) 960 (To record payment to creditor) May 11 Supplies 9,000 Cash 9,000 (To record purchase of supplies) May 12 Purchases 9,000 Cash 9,000 (To record cash purchases) May 15 Cash 2,300 Purchase refund 2,300 (To record purchase refund) May 17 Purchases 19,000 Accounts payable 19,000 (To record credit purchases) May 19 Freight In 2,500 Cash 2,500 (To record freight cost paid) May 24 Purchases 62,000 Cash 62,000 (To record purchases) May 25 Purchases 10,000 Accounts payable 10,000 (To record credit purchases) May 27 Accounts payable 19,000 Cash 18,620 Purchase discount (19,000 x 2%) 380 (To record cash paid to supplier) May 29 Sales returns 1,000 Cash 1,000 (To record sales return and refund) May 31 Account receivables 16,000 Sales 16,000 (To record credit sales) May 31 Cash 50,000 Capital 50,000 (To record investment) May 31 Ending inventory 30,500 Purchases 30,500 (To record Inventory)
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.
Instruction: Do its general ledgers,
|
Date |
Particulars |
Debit |
Credit |
|
May 1 |
Purchases |
50,000 |
|
|
|
Accounts payable |
|
50,000 |
|
|
(To record purchase of inventory) |
|
|
|
|
|
|
|
|
May 2 |
|
40,000 |
|
|
|
Sales revenue |
|
40,000 |
|
|
(To record credit sales) |
|
|
|
|
|
|
|
|
May 5 |
Accounts payable |
2,000 |
|
|
|
Purchase returns |
|
2,000 |
|
|
(To record purchase return) |
|
|
|
|
|
|
|
|
May 9 |
Cash |
39,200 |
|
|
|
Sales discount (40,000 x 2%) |
800 |
|
|
|
Account receivables |
|
40,000 |
|
|
(To record cash collection from customers) |
|
|
|
|
|
|
|
|
May 10 |
Accounts payable |
48,000 |
|
|
|
Cash |
|
47,040 |
|
|
Purchase discount (48,000 x 2%) |
|
960 |
|
|
(To record payment to creditor) |
|
|
|
|
|
|
|
|
May 11 |
Supplies |
9,000 |
|
|
|
Cash |
|
9,000 |
|
|
(To record purchase of supplies) |
|
|
|
|
|
|
|
|
May 12 |
Purchases |
9,000 |
|
|
|
Cash |
|
9,000 |
|
|
(To record cash purchases) |
|
|
|
|
|
|
|
|
May 15 |
Cash |
2,300 |
|
|
|
Purchase refund |
|
2,300 |
|
|
(To record purchase refund) |
|
|
|
|
|
|
|
|
May 17 |
Purchases |
19,000 |
|
|
|
Accounts payable |
|
19,000 |
|
|
(To record credit purchases) |
|
|
|
|
|
|
|
|
May 19 |
Freight In |
2,500 |
|
|
|
Cash |
|
2,500 |
|
|
(To record freight cost paid) |
|
|
|
|
|
|
|
|
May 24 |
Purchases |
62,000 |
|
|
|
Cash |
|
62,000 |
|
|
(To record purchases) |
|
|
|
|
|
|
|
|
May 25 |
Purchases |
10,000 |
|
|
|
Accounts payable |
|
10,000 |
|
|
(To record credit purchases) |
|
|
|
|
|
|
|
|
May 27 |
Accounts payable |
19,000 |
|
|
|
Cash |
|
18,620 |
|
|
Purchase discount (19,000 x 2%) |
|
380 |
|
|
(To record cash paid to supplier) |
|
|
|
|
|
|
|
|
May 29 |
Sales returns |
1,000 |
|
|
|
Cash |
|
1,000 |
|
|
(To record sales return and refund) |
|
|
|
|
|
|
|
|
May 31 |
Account receivables |
16,000 |
|
|
|
Sales |
|
16,000 |
|
|
(To record credit sales) |
|
|
|
|
|
|
|
|
May 31 |
Cash |
50,000 |
|
|
|
Capital |
|
50,000 |
|
|
(To record investment) |
|
|
|
|
|
|
|
|
May 31 |
Ending inventory |
30,500 |
|
|
|
Purchases |
|
30,500 |
|
|
(To record Inventory) |
|
|
|
|
|
|
|
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