Ravilero Ltd uses the periodic inventory system and has control accounts and subsidiary ledgers for trade receivables and payables. The general ledger control account balances at 1 June 2019 were: Accounts receivable control $88,520 Accounts payable control 103,820 The following transactions took place during June: Credit inventory sales for the month $116,130 Cash inventory purchases for the month 83,900 Credit inventory purchases for the month 58,820 Cash payments to creditors for the month 115,520 Discount received for the month 2,740 Discount allowed for the month 2,130 Cash receipts from customers for the month 118,100 Cash inventory sales for the month 8,510 June 8: Goods (unpaid) returned by customer 8,440 June 11: Bill payable accepted by creditor in respect of balance of account 2,500 June 16: Goods (paid for) returned to supplier and received cash 6,460 June 21: Offset of accounts receivable and payable recorded 8,510 June 23: Goods (paid for) returned by customer and they were given cash 6,000 June 28: Goods (unpaid) returned to supplier 7,900 make a T leaget about Account payable and Account Receivable
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.
Ravilero Ltd uses the periodic inventory system and has control accounts and subsidiary ledgers for trade receivables and payables. The general ledger control account balances at 1 June 2019 were:
| $88,520 | |
| Accounts payable control | 103,820 |
The following transactions took place during June:
| Credit inventory sales for the month | $116,130 | |
| Cash inventory purchases for the month | 83,900 | |
| Credit inventory purchases for the month | 58,820 | |
| Cash payments to creditors for the month | 115,520 | |
| Discount received for the month | 2,740 | |
| Discount allowed for the month | 2,130 | |
| Cash receipts from customers for the month | 118,100 | |
| Cash inventory sales for the month | 8,510 | |
| June 8: Goods (unpaid) returned by customer | 8,440 | |
| June 11: Bill payable accepted by creditor in respect of balance of account | 2,500 | |
| June 16: Goods (paid for) returned to supplier and received cash | 6,460 | |
| June 21: Offset of accounts receivable and payable recorded | 8,510 | |
| June 23: Goods (paid for) returned by customer and they were given cash | 6,000 | |
| June 28: Goods (unpaid) returned to supplier | 7,900 |
make a T leaget about Account payable and Account Receivable
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