QUESTION ONE. Complete the table by showing the accounts to be debited and credited for Favor Enterprise DATE YEAR TRANSACTIONS ACCOUNTS TO ACCOUNTS TO BE DEBITED March, 2018 BE CREDITED Started business with GHe 20,000 in the cash Atsu lent the business GHc 5.000 in cheque Bought goods on credit from Berku GHc 1,530 Sold goods for cheque GHe 1,910 Took GHc 200 of cheque for office use Sold goods on credit to Chiiki GHe 1,374 Sold goods on credit to Zaa GHc 341 Bought goods on credit from Berku GHc 488 Chiiki returned goods to us GHc 65 Sold goods on credit to Gafa GHc 535 We returned goods to Berku GHc 94 Bought Van on credit from Zakat Ltd. GHc 4,370 Bought office furniture on credit from WudArtist Ltd. GHc 1,800 Bought goods for cheque GHc 390 Goods sold for cash paid directly into the bank GHe 110 Paid money owing to Berku by Cheque GHc 1,924 Goods returned to us by Bafa GHc 34 Returned some of office furniture costing GHc 180 to Wudartist Ltd. We put a further GHc 2,500 into the 10 11 12 14 15 17 2457 18 19 24 25 26 27 28
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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