prepare aTrial Balance as at March 31, 2018. Purchases 80,000 Salaries & Wages 42,500 Discount (Dr.) . 6,500 Sales 1,50,000 Travelling Expenses 2,500
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.
From the details given below prepare aTrial Balance as at March 31, 2018.
Purchases 80,000
Salaries & Wages 42,500
Discount (Dr.) . 6,500
Sales 1,50,000
Travelling Expenses 2,500
Carriage Outwards 225
Carriage Inwards 1,375
Repairs 1,500
Insurance 750
Miscellaneous Expenses 275
Commission Paid 1,625
Buildings 20,000
Rent and Rates 2,500
Machinery 7,500
Cash in hand 125
Horses and Carts 2,500
Cash at bank 13,625
Stock in Trade (1-4-2017) 29,500
Sundry Debtors 16,025
Capital 68,525
Sundry Creditors 10,500
(Answer: Total of
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