The following information was available for Shekinahs business as at 31st December, 2018 Balances as at 01st December 2018 Sales Ledger K929,240 Purchases Ledger K509,300 Totals for the month up to 31st December 2018 Purchases 1,529,480 Sales 2,520,480 Purchases returns 43,080 Bad debts written off 25,060 Discount Allowed 14,920 Discount Received 38,840 Cash from customer 2,409,280 Cash paid to creditors 1,409,520 Required: Prepare the debtors ledger control account and balance it off Prepare the creditors ledger control account and balance it off How much was owed to and how much did Shekinah owe as at 31st december 2018
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.
The following information was available for Shekinahs business as at 31st December, 2018
Balances as at 01st December 2018
Sales Ledger K929,240
Purchases Ledger K509,300
Totals for the month up to 31st December 2018
Purchases 1,529,480
Sales 2,520,480
Purchases returns 43,080
Discount Allowed 14,920
Discount Received 38,840
Cash from customer 2,409,280
Cash paid to creditors 1,409,520
Required:
Prepare the debtors ledger control account and balance it off
Prepare the creditors ledger control account and balance it off
How much was owed to and how much did Shekinah owe as at 31st december 2018
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