SECTION IV: ADJUSTED TRIAL BALANCE Kelly Consulting Adjusted trial balance as at 31 May 2019 Account Name Unadjusted Adjustment Adjusted Debit (RM) Credit (RM) Debit (RM) Credit (RM) Debit (RM) Credit (RM) Cash 22,100 Accounts Receivable 3,400 Supplies 1,350 Prepaid Rent 3,200 Prepaid Insurance 1,500 Office Eqiupment 14,500 Accumulated Depreciation 330 Accounts Payable 800 Salaries Payable 120 Unearned Fees 2,500 Kelly Pitney, Capital 42,300 Total 46,050 46,050 At the end of May, the following adjustment data were assembled: (a) Insurance expired during May is RM275. (b) Supplies on hand on May 31 are RM715. (c) Depreciation of office equipment for May is RM330. (d) Accrued receptionist salary on May 31 is RM325. (e) Rent expired during May is RM1,600. (f) Unearned fees on May 31 are RM3,210.
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.
SECTION IV: ADJUSTED
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Kelly Consulting Adjusted trial balance as at 31 May 2019 |
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Account Name |
Unadjusted |
Adjustment |
Adjusted |
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Debit (RM) |
Credit (RM) |
Debit (RM) |
Credit (RM) |
Debit (RM) |
Credit (RM) |
|
|
Cash |
22,100 |
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3,400 |
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Supplies |
1,350 |
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Prepaid Rent |
3,200 |
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|
Prepaid Insurance |
1,500 |
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Office Eqiupment |
14,500 |
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330 |
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Accounts Payable |
|
800 |
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Salaries Payable |
|
120 |
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Unearned Fees |
|
2,500 |
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Kelly Pitney, Capital |
|
42,300 |
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Total |
46,050 |
46,050 |
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At the end of May, the following adjustment data were assembled:
(a) Insurance expired during May is RM275.
(b) Supplies on hand on May 31 are RM715.
(c) Depreciation of office equipment for May is RM330.
(d) Accrued receptionist salary on May 31 is RM325.
(e) Rent expired during May is RM1,600.
(f) Unearned fees on May 31 are RM3,210.
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