Sherlly produced the following information on 1 June 2014 Purchase ledger control - Debit Credit Sales Ledger Control - Debit Credit Provision for Bad Debts The following took place during the month ended 30 June 2014 Credit sales Credit purchase Payment to credit suppliers Discount allowed Dishonoured cheque from customers Return outward Bad debts written off Discount received Receipt from customers (inclusive cash sales) Cash purchases Cash sales Debit balances on Sales ledger transferred to Purchase Ledger(contra) Return inward Legal expenses charged to customers account Interest charged by suppliers Interest charged on overdue balance of debtors Provision for bad debts Balance as at 30 June 2014 Purchase Ledger control-debit balance Sales ledger control - credit balance Required: RM 250 8,800 12,000 150 260 85,000 60,000 35,000 1,500 500 1,500 296 300 70,000 3,540 9,200 300 900 150 85 100 317 260 300 O Prepare the relevant control accounts for June 2014. Prepare a balance sheet extract showing how the debtors and creditors figures would be shown at 30 June 2014.
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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