TRANSACTIONS BIRDS AND FLOWERS NURSERY SCHOOL CHART OF ACCOUNTS SEPT. 2016 1-G. Alajar opened a television repair shop he called "Sure Repair Shop". He began business by investing P25, 000 cash, repair tools-30, 000, repair supplies- 15, 000 and a truck -120, 000. 2- Paid P 1, 500 for newspaper advertising announcing the opening of his shop. 3- Purchased office tables and chairs and filing cabinets from 16 FurnitureandFixtures Assets 11 Cash Income 41 Service Income 12 Accounts Receivable- R.Gil 13 Accounts Receivable- M. Soriano 14 RepairTools 15 RepairSupplies Cruz Furniture on credit, P16, 500 5- Completed repair work for R. Gil on credit, P 1, 200 9- Completed repair work for M. Soriano P 2, 200. Accepted P 1, Expense 21 Accounts Payable-Cruz Furniture Expenses 51 AdvertisingExpense 52 SalariesExpense 53 UtilitiesExpense 54 Rent 17 ServiceEquipment Liabilities 000 22 Notes Payable-Cruz Furniture cash and a promise to pay the balance after five days. 15 - Paid the wages of the shop helper, 1, 000 18 - Paid one-half of the account due to Cruz Furniture and issued a promissory note for the other half 20 -R. Gil paid his account in full | 25 – Withdrew cash for P 3, 500 for personal use | 28- Received P 25, 000 from various customers for repair service rendered |30- Paid the monthly bills, P 1, 500 30- Paid the monthly rent of the shop, P2, 000 30- Paid the wages of the shop helper P 1, 000 Capital 31 G. Alajar, Capital 32 G. Drawing
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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