s a doctor who operates a medical practice. Roger employs two employees (a nurse and a receptionist). Another doctor works at the practice as employee on a part-time basis. The business is operated from rented premises. Roger also owns several residential properties which he rents out to tenants. Assume Roger is registered for GST in respect of the above and accounts for GST on an accruals basis. For the quarter ended 30 June 2021, the following transactions were reported in the accounting records maintained by Roger: Receipts (inclusive of GST where appropriate) Fees from patients 220000 $ Rent from tenants 55000 $ Expenses (inclusive of GST where appropriate) Rent for premises used for medical practice 11000 $ Wages for nurse and receptionist 22000 $
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.
Roger Jones is a doctor who operates a medical practice. Roger employs two employees (a nurse and a receptionist). Another doctor works at the practice as employee on a part-time basis. The business is operated from rented premises. Roger also owns several residential properties which he rents out to tenants. Assume Roger is registered for GST in respect of the above and accounts for GST on an accruals basis. For the quarter ended 30 June 2021, the following transactions were reported in the accounting records maintained by Roger:
Receipts (inclusive of GST where appropriate)
Fees from patients 220000 $
Rent from tenants 55000 $
Expenses (inclusive of GST where appropriate)
Rent for premises used for medical practice 11000 $
Wages for nurse and receptionist 22000 $
Remuneration paid to the part-time doctor 55000 $
Fresh flowers for Roger’s home 660 $
Plumbing repairs to residential premises 1100 $
New light fittings for residential premises (tax invoice not received) 3300 $
Repayments of loan used to buy residential premises 7700 $
New laptop for Roger – used 50/50 for managing medical practice and his investment properties 2200 $
Required：whether any of the acquisitions are creditable acquisitions, and how the input tax credit for each creditable acquisition is calculated.
please teach about which laws are cited here if possible, thank you so much
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