Question 2 The following are the transactions of Lim Trading in May: May 1 Start a business with Cash in hand RM800 and Cash at bank RM1,000 2 Purchased goods by cheque RM400 2 Paid rates to Dewan Bandaraya Kuala Lumpur by cheque RM40 4 Bought goods on credit from Qin Co RM200 8 Sold goods to Tali on credit RM300 9 Cash sales RM80 10 Paid transport by cash RM12 13 Credit sales to Tali RM300 14 Paid for stationery in cash RM16 15 Introduced further capital RM1,000 by cheque 16 Tali paid for the amount owing by cheque, less 5% discount (calculate the amount) 20 Withdrew cash for own use RM120 24 Purchased goods with office cash RM28 25 Paid Qin Co a cheque in full settlement of the amount owing, less 5% discount (calculate the amount) 26 Sold goods on credit to Tali RM450 28 Paid transport by cash RM10 30 Transferred cash from office to bank RM400 30 Credit purchase from Qin Co RM300 31 Refund cash to Tali for returning empty containers for recycling RM5 31 Bought office furniture, paid by cheque RM200 31 Paid Sam a cheque in settlement of outstanding invoice of RM700 and deducting RM35 cash discount 31 Receive a cheque from Ken RM475 after deducting RM25 cash discount Required: Enter the above transactions in a three-column Cash Book and close the Cash Book at the end of May (ignore those transactions that do not involve the Cash Book). Post to the appropriate ledgers.
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 2
The following are the transactions of Lim Trading in May:
|
May |
|
|
1 |
Start a business with Cash in hand RM800 and Cash at bank RM1,000 |
|
2 |
Purchased goods by cheque RM400 |
|
2 |
Paid rates to Dewan Bandaraya Kuala Lumpur by cheque RM40 |
|
4 |
Bought goods on credit from Qin Co RM200 |
|
8 |
Sold goods to Tali on credit RM300 |
|
9 |
Cash sales RM80 |
|
10 |
Paid transport by cash RM12 |
|
13 |
Credit sales to Tali RM300 |
|
14 |
Paid for stationery in cash RM16 |
|
15 |
Introduced further capital RM1,000 by cheque |
|
16 |
Tali paid for the amount owing by cheque, less 5% discount (calculate the amount) |
|
20 |
Withdrew cash for own use RM120 |
|
24 |
Purchased goods with office cash RM28 |
|
25 |
Paid Qin Co a cheque in full settlement of the amount owing, less 5% discount (calculate the amount) |
|
26 |
Sold goods on credit to Tali RM450 |
|
28 |
Paid transport by cash RM10 |
|
30 |
Transferred cash from office to bank RM400 |
|
30 |
Credit purchase from Qin Co RM300 |
|
31 |
Refund cash to Tali for returning empty containers for recycling RM5 |
|
31 |
Bought office furniture, paid by cheque RM200 |
|
31 |
Paid Sam a cheque in settlement of outstanding invoice of RM700 and deducting RM35 cash discount |
|
31 |
Receive a cheque from Ken RM475 after deducting RM25 cash discount |
Required:
- Enter the above transactions in a three-column
Cash Book and close the Cash Book at the end of May (ignore those transactions that do not involve the Cash Book).
- Post to the appropriate ledgers.
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