The transactions below relate to S ASH for the month ended 30 June 2021. Date Transactions Amount 2021 R Jun 01 S Ash deposited capital into the business bank account 80 000 05 The business obtained a loan from LTC Bank 15 000 07 Acquired a vehicle and settled the purchase price by cheque 25 000 08 Bought cleaning material from AD Suppliers on credit 500 10 Invoiced Dekker Hotel for cleaning services rendered 1 000 12 Received a cheque from Dekker Hotel and deposited it in the bank account 500 14 Paid Salaries by cheque 1 500 16 An advert was published in the daily news. This is payable in 30 days 250 25 S Ash transferred his personal equipment into the business 10 000 30 Stationery on hand 1 000 Required: Analyse the above transactions in tabular form as follows: A/C.DEBIT A/C.CREDIT A = E + L
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 transactions below relate to S ASH for the month ended 30 June 2021.
Date Transactions Amount
2021 R
Jun 01 S Ash deposited capital into the business bank account 80 000
05 The business obtained a loan from LTC Bank 15 000
07 Acquired a vehicle and settled the purchase price by cheque 25 000
08 Bought cleaning material from AD Suppliers on credit 500
10 Invoiced Dekker Hotel for cleaning services rendered 1 000
12 Received a cheque from Dekker Hotel and deposited it in the bank account 500
14 Paid Salaries by cheque 1 500
16 An advert was published in the daily news. This is payable in
30 days 250
25 S Ash transferred his personal equipment into the business 10 000
30 Stationery on hand 1 000
Required:
Analyse the above transactions in tabular form as follows:
A/C.DEBIT A/C.CREDIT A = E + L
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