Transaction Account to be debited Account to be credited a. Started a business with RM50,000 by cash b. Owner transfer RM25,000 cash to the business bank account c. Purchased a motor vehicle on credit from Honda Berhad for RM40,000 d. Bought goods on credit from Laila Berhad worth RM250 e. Paid to Lili Berhad, a creditor RM100 by cheque f. The owner took out RM1,500 cash for family holiday trip with his family g. Goods purchased from Lili Berhad broken so we returned back to her worth RM25 h. Cash sales RM800 i. Paid electricity bill by cheque for RM200
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.
Transaction Account to be
debited
Account to be
credited
a. Started a business with RM50,000 by cash
b. Owner transfer RM25,000 cash to the
business bank account
c. Purchased a motor vehicle on credit from
Honda Berhad for RM40,000
d. Bought goods on credit from Laila Berhad
worth RM250
e. Paid to Lili Berhad, a creditor RM100 by
cheque
f. The owner took out RM1,500 cash for family
holiday trip with his family
g. Goods purchased from Lili Berhad broken
so we returned back to her worth RM25
h. Cash sales RM800
i. Paid electricity bill by cheque for RM200
Transaction Asset Liabilities Capital
Example : Start a
business with cash in
hand
+ Cash + Capital
a) The owner brought
in his furniture for
business use
b) Bought motor van
on credit for
business use
c) Deposited cas into
a bank
d) Sold goods on
credit to Ayoyo Sdn
Bhd
e) Paid creditor Imran
Enterprise by
cheque
f) Bought goods on
credit from Batani
Enterprise
g) The owner invested
additional cash into
business
h) Goods are returned
by Batani Enterprise
because damage
i) Received a loan
from OACC Bank
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