On 1 January 2020, Mrs. Marissa established Faster Enterprise in providing courier services for the Jitra Valley. The following transactions had taken place during the first month of its operation. January RJ had invested RM100,000 cash and RM35,000 office equipment to the business as a means of capital. Purchased office supplies RM10,000 on credit. Purchased a second-hand van for RM35,000 in cash. Completed services to customers for RM40,000 in cash. Paid creditors RM5,000 for the office supplies purchased on 6 January. Completed services for customer amounting RM25,000 and billed to the account. Paid RM5,000 for employee salaries. Paid electric and miscellaneous expenses for the month RM2,000 and RM2,500 respectively. RJ withdrew cash RM10,000 for personal use. 1 6 8 17 20 25 29 29 29 30 Customer paid his bill in full amount for the services rendered on 25 January. REQUIRED: (a) Journalise the transactions for the month of January 2020. (Explanation is not required). (b) Prepare Cash Account and determine the account balance.
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.
On 1 January 2020, Mrs. Marissa established Faster Enterprise in providing courier services for
the Jitra Valley. The following transactions had taken place during the first month of its operation.
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