Question 1 Alan runs his own e-marketing consulting business called Alan E-Marketing. On 1st January 2019, the business of Alan E-Marketing had the following accounts and balances in its general ledger. Accounts title RM Cash at Bank 4,000 Accounts Receivable 12,000 Motor Vehicle 20,000 Office Equipment 4,000 Accounts Payable 6,000 Capital: Alan Tan 34,000 For the month of January, Alan E-Marketing completed the following transactions. Jan 4 Purchased office equipment RM3,800 on credit from Jop Office Supplies. Jan 8 Received a cheque of RM7,500 from accounts receivable Jan 10 Provided consultancy service on credit to Frankie for RM4,500 Jan 13 Paid the balance due of RM6,000 to accounts payable by cheque. Jan 17 Paid in full to Jop Office Supplies for the office equipment bought on January 4. Jan 20 Received RM2,600 commission by cheque for introducing a client to another business. Jan 31 Paid rent RM1,500 by cheque Required: Record the opening balances and the transactions for the month of January in the GENERAL LEDGER. Prepare a TRIAL BALANCE from the general ledger balances as at 31st January 2019.
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.
Question 1
Alan runs his own e-marketing consulting business called Alan E-Marketing. On 1st January 2019, the business of Alan E-Marketing had the following accounts and balances in its general ledger.
|
Accounts title |
RM |
|
Cash at Bank |
4,000 |
|
|
12,000 |
|
Motor Vehicle |
20,000 |
|
Office Equipment |
4,000 |
|
Accounts Payable |
6,000 |
|
Capital: Alan Tan |
34,000 |
For the month of January, Alan E-Marketing completed the following transactions.
|
Jan 4 |
Purchased office equipment RM3,800 on credit from Jop Office Supplies. |
|
Jan 8 |
Received a cheque of RM7,500 from accounts receivable |
|
Jan 10 |
Provided consultancy service on credit to Frankie for RM4,500 |
|
Jan 13 |
Paid the balance due of RM6,000 to accounts payable by cheque. |
|
Jan 17 |
Paid in full to Jop Office Supplies for the office equipment bought on January 4. |
|
Jan 20 |
Received RM2,600 commission by cheque for introducing a client to another business. |
|
Jan 31 |
Paid rent RM1,500 by cheque |
Required:
-
Record the opening balances and the transactions for the month of January in the GENERAL LEDGER.
-
Prepare a
TRIAL BALANCE from the general ledger balances as at 31st January 2019.
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