Problem 1. Mr. Asif started his Computer Repair Business in Salalah in July 2020. During the month of July, the following transactions occurred: July 1 Asif opened the business by investing OMR 192,000. July 2 Purchased Computers for OMR 20,000 and immediately paid OMR 4,000 and |promised the supplier to pay the remaining amount in the future. July 5 Purchased supplies on account for OMR 6,500. July 6 Provided repair service to a customer, OMR 3,600. The customer paid OMR 2,000 and the remaining will be paid in the near future. July 10 Paid the remaining amount for the Computers bought July 2md. July 15 Provided repair service to a customer on account, OMR 16,000. July 16 Purchased Printer by cash, OMR 7,000 July 23 Received cash from the client who was billed on July 15th, OMR 16,000. July 25 Received the electricity bill, OMR 300 which will be paid at the end of July. July 26 Asif received Internet bill, OMR 120 which will be paid at the end of the month. July 31 Paid the Internet bill received on 26th July. July 31 Asif paid monthly rent, OMR 400. July 31 Paid the Electricity bill, OMR 300 Prepare the unadjusted trial balance for Mr. Asif as of July 31* 2020. Required: 2. Prepare ledger 3. Prepare unadjusted trial 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.
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