The following are business transactions of Disperas Computer Shop for the month of January 2022. As bookkeeper of the company, you are to record these transactions in the general jourmal, prepare the general ledger and trial balance Jan 1 R. Disperas invested to the computer shop in cash for P 100,000. 2 Purchased computers on credit P 12,000 3 Purchased additional computers for cash P 6,000 6 Purchased air conditioning unit on credit P 10,000 7 R. Disperas invested computer equipment for the computer shop 3 6 worth P 20,000 8. Borrowed money from the bank payable in 2 years P 40,000 15 R. Disperas made additional investment in cash P 75.000 Made partial payment to the bank loan P 20,000 20 Purchased new furniture on creditP 10,000. 21 Billed customers for services rendered on account P 30,000 25 Collected from customers billed on account P 10.000 27 Rendered services for cash to customers P 45,000 28 Paid rental of the computer shop 10,000, telephone bills P 5,000 and electricity P 3,000 30 Withdraws cash P 5,000 31 Paid water bill P2,000 and employees salaries P 15,000
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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