The owner contributed P800,00 cash to the business. The business purchased inventory worth P100,000 on cash basis. The business purchased inventory worth P400,000 on account, The business sold goods for P300,000 cash. The cost of the goods sold is P120,000. The business sold goods for P700,000 on account. The cost of the goods sold is P280,000. The business paid P400,000 account payable. The business collected P700,000 accounts receivable. The business purchased equipment worth P280,000 for cash. The owner withdraws P20,000 from the business. Oct. 1 Oct. 3 Oct. 4 Oct. 8 Oct. 12 Oct. 15 Oct. 17 Oct. 18 Oct. 22 Oct. 31 The business paid salaries expense of P50,000 Requirement: Provide the journal entries to record the transaction.
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.
I need the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
