The folowing information relates to the business of Top End Enterprise for the month of May 2019: Balances at May 1, 2019 85 600 Dr. 3 000 Dr. 3 800 Cr. 66 B00 Cr. Accounts Receivable Ledger Accounts Payable Ledger Totals for the month of May 2019 Sales Journal 451 600 326 000 13 400 Purchases Journal Sales Returns Journal 11 000 Purchases Returns Journal Cash and cheques paid to credit suppliers Cash and cheques received from credit customers Customers' cheques dishonoured Bad debts written off Balances in Accounts Receivable Ledger transferred to the 283 200 362 800 8 400 6 000 10 000 7 200 Accounts Payable Ledger Cash refunded by suppliers Discounts Received 18 800 13 600 Discounts Allowed Balances at May 31, 2019 Accounts Receivable Ledger Accounts Payable Ledger 137 000 Dr. 1 000 Cr. 74 000 Cr. You are required to: (1) (i) () (Iv) State TWO benefits of preparing Control Accounts Prepare the Accounts Receivabie Ledger Control Account Prepare the Accounts Payable Ledger Control Account Calculate the net amount owed by credit customers on 31 May 2019 Explain ONE possible reason why the Accounts Receivable Ledger Control Account had both a debit and a credit balance (v)
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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