Sunshine Enterprise owns a small furniture shop in SS15, Subang. The following transactions were extracted from the book on 30 September 2021: 2021 Sept 2 Invested RM245,000 in the bank and RM3,000 cash to start the business. 3 Paid rent RM12,000 by cheque. 6 Bought goods RM50,152 on credit from Parker Store. 9 Bought office equipment RM31,980 on credit from STC Shop. 10 Cash sales for RM1,126. 13 Returned goods RM1,810 to Parker Store. 15 Sold goods RM17,120 on Credit to PPT Book. 18 Returned some extra parts of office equipment RM890 to STC Shop 23 Received goods RM598 returned by PPT Book. 28 Bought trolley RM2,875 by cheque. 29 Paid electricity bill RM1,554 through bank transfer. 30 Received full payment from PPT Book through a bank-transfer. 30 Paid RM5,000 to owner’s family by cheque for a family trip to Japan. Required: (a) Enter above transactions into ledger (T-accounts) and balance off the account. (b) Prepare a trial balance as at 30 September 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.
Sunshine Enterprise owns a small furniture shop in SS15, Subang. The following transactions were extracted from the book on 30 September 2021:
2021
Sept 2 Invested RM245,000 in the bank and RM3,000 cash to start the business.
3 Paid rent RM12,000 by cheque.
6 Bought goods RM50,152 on credit from Parker Store.
9 Bought office equipment RM31,980 on credit from STC Shop.
10 Cash sales for RM1,126.
13 Returned goods RM1,810 to Parker Store.
15 Sold goods RM17,120 on Credit to PPT Book.
18 Returned some extra parts of office equipment RM890 to STC Shop
23 Received goods RM598 returned by PPT Book.
28 Bought trolley RM2,875 by cheque.
29 Paid electricity bill RM1,554 through bank transfer.
30 Received full payment from PPT Book through a bank-transfer.
30 Paid RM5,000 to owner’s family by cheque for a family trip to Japan.
Required:
(a) Enter above transactions into ledger (T-accounts) and balance off the
account.
(b) Prepare a
D2
Explain the relationship between Liability and Capital in term of
Equation. (Support your answers with relevant term/concept)
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