PA4.  LO 7.4Use the journals and ledgers that follow. Total the journals. Post the transactions to the subsidiary ledger and (using T-accounts) to the general ledger accounts. Then prepare a schedule of accounts receivable.

Q: Below are the steps in the measurement process of external transactions. Arrange them from first (1)…

A: Measurement process of external transactions:

Q: Determining the effect of a transaction on the accounts is a desired outcome of which step of the…

A: Journal entries :we need to record the journal entries fro the transactions and events happened…

Q: The General Ledger Question: Can the General Ledger be represented in different formats? I have seen…

A: An organization employs a general ledger (GL)—a group of numbered accounts—to record its financial…

Q: The process of transferring the debits and credits from the journal entries to the accounts is…

A: Accounting cycle: Accounting cycle is a step by step process of analysing, classifying, and…

Q: Transactions related to revenue and cash receipts completed by Sterling Engineering Services during…

A: 1&5. Prepare general ledger.

Q: After posting is completed in the accounts receivable ledger and the g ledger, the total of the…

A: Solution: Accounts receivable ledgers are subsidiary ledgers where all credit sales with respective…

Q: Explain the two methods of recording account receivables and credit sales and the PFRS 15…

A: *Two method of recording  account receivable  are: 1. record receivables and sales gross 2 .record…

Q: Match each example with a component of a computerized accounting information system. Components may…

A: component of a computerized accounting information system. Components may be used more than once.:…

Q: On April 1. Adventures Travel Agency began operations. The following transactions were completed…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

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.