the business. February 1 - PPS paid advance rent for 6 months. P120,000. February 2 - PPS received an order for P12,000 for shirt printing services. PPS rendered and delivered the order on the same day. Client will pay on February 15, 2022. February 4 - PPS purchase supplies to National Bookstore amounting to P 80,000. PPS paid CASH. February 4 - PPS rendered embroidery services to San Miguel Corporation. PPS billed the client, P250,000 and give 15 days' terms for the payment. February 5 - a walk-in client avail printing services. The customer paid P10,000 for the services rendered. February 6 - PPS purchase a laminating machine for ID. PPS received a billing invoice from the supplier amounting to P15,000 with 15 days term. February 10 - PPS paid the following expenses: Salary of personnel P15,000, Meals P 25,000, Internet Expense P6,500 and Repairs P2,500. February 12 - PPS received an advance payment of P150,000 from the client for office uniforms printing services to be delivered on February 25, 2022. February 15 - PPS received P500,000 cash from BDO Universal Bank. The term of the loan is 5 years. Repayment of the loan is monthly. PPS will start paying this month. February 15 - PPS received payment of P12,000 from client last February 2. February 18 - PPS purchase additional supplies. P50,000. PPS paid cash. February 20 - PPS service rendered for a client P10,000. The client issued a note with 10 days term. February 21 PPS received Meralco bill for February amounting to P34,500. PPS will pay the bill on March 5, 2022 February 25 - PPS delivered to the client the uniforms ordered last February 12, 2022. February 26 - PPS purchase additional Epson Printer for the business. PPS received a billing from Abenson Inc. amounting to P 55.000. Billing due date is on March 15, 2022
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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