QUESTION 1 McKie Ltd has presented you with the following balances for the year ended September 30, 2023: Creditors Sales Revenue Land at cost Building at cost Furniture and fittings at cost Bank Provision for Depreciation Buildings Furniture and fittings Discounts Retained Earnings at 1 Oct 2022 Provision for bad debts Goodwill Cash Inventory at 1 Oct 2022 Rent Received(from Breezy Ltd) Rent Wages and Salaries Insurance Carriage Inwards Returns Commission received 8% Mortgage Other Operating Expenses Debtors Purchases Debenture Interest Mortgage Interest Bad debt 7% Debentures 4% Preference Shares @ $0.5 Ordinary Shares @ $0.75 General Reserves Interim ordinary dividends paid 550,000 570,000 85,000 5,700 14,800 400,000 16,400 48,000 7,900 122,000 16,300 2,300 8,500 2,500 45,000 340,000 1,200 4,600 4,700 4,500 2,249,400 $ 22,500 1,143,700 14,000 120,000 15,000 5,800 2,200 27,000 12,000 5,200 100,000 150,000 130,000 375,000 127,000 2,249,400
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.
Can you provide the statement of
Thanks in advance
Step by step
Solved in 3 steps
