Saniz Co is a supplier of instant hand sanitizer. Saniz Co uses the periodic inventory system. The balance of assets and liabilities as at I March 2021 were as follows: Saniz Co Trial Balance as at 1 March 2021 RM RM Accounts payable Accounts receivable Capital Cash at bank Furniture & Fittings Inventory 30,000 40,000 100,000 23,000 26,000 41,000 130,000 130,000 The following transactions took place during the month of March 2021: ch 2 Issued a cheque RM15,000 to supplier to settle partial outstanding in February 2021 5 Purchased extra couple design hand sanitizers worth RM20,000 on terms 8/20, n/30 7 Purchased office equipment worth RM1,200 and paid by cheque. 9 Sold hand sanitizers at RM15, 500 on terms 10/20, n/30. 10 Received loan worth RM30,000. 12 Returned damaged hand sanitizers purchased on 5 March worth RM6,000. 14 A customer returned hand sanitizers sold on 9 March worth RM1,000. 15 Customer settled paid in full the amount outstanding by cheque for the sales made on 9 Marc 17 Walch, the owner of Saniz Co withdrew some instant hand sanitizers worth RM2,000 to giv for the local clinics. 18 Sold 20 alcohol free sanitizer worth RM25 cach and received cheque. 19 Paid suppliers by cheque in full settlement for purchases made on 5 March 21 Received commission worth RM1,000. 23 Purchased more instant hand sanitizers worth RM3,000 paying by cheque 25 Purchased a delivery vehicle paying by cheque worth RM20,000 28 Paid advertisement by cheque worth RM2,000. 30 Paid salaries by cheque worth RM1,800. *All receipt and payment made by cheque. You are required to prepare: a) Ledgers to record the above transa ctlons. b) a trial balance as at 31 March 2021
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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