You are to enter up the necessary accounts for the month of June from the following details, and then balance off the accounts and extract a trial balance as at 30th June 2015 June 1: Started the firm with capital in cash Kshs. 750,000 June 2: Bought goods on credit from F. Kamau Kshs. 162,000 K. Musioka Kshs. 261,000 G. Mutiso. Kshs. 75,000 M. Kim 228,000 and F. Njoroge 192,000 June 4: Sold goods on credit to M. Coke Kshs. 120,000, T. Big Kshs. 186,000 and K. Muigai Kshs. 528,000 June 6: Paid rent by cash Kshs. 36,000 June 9: M. Coke paid us his account by cheque Kshs. 129,000 June 10: H. Muigai paid us Kshs.450000 by cheque June 12: We paid the following by cheque G. Mutiso Kshs. 75,000, F. Kamau Kshs. 162,000 June 15: Paid carriage by cash Kshs. 69,000 June 18: Bought goods on credit form K. Musioka Kshs. 129,000, M. Kim Kshs. 330,000 June 21: Sold goods on credit to T. Big Kshs. 201,000 June 30: Paid rent by cheque Kshs. 54,000
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.
You are to enter up the necessary accounts for the month of June from the following details, and then balance off the accounts and extract a
June 1: Started the firm with capital in cash Kshs. 750,000
June 2: Bought goods on credit from F. Kamau Kshs. 162,000 K. Musioka
Kshs. 261,000 G. Mutiso. Kshs. 75,000 M. Kim 228,000 and F. Njoroge
192,000
June 4: Sold goods on credit to M. Coke Kshs. 120,000, T. Big Kshs. 186,000 and K. Muigai
Kshs. 528,000
June 6: Paid rent by cash Kshs. 36,000
June 9: M. Coke paid us his account by cheque Kshs. 129,000
June 10: H. Muigai paid us Kshs.450000 by cheque
June 12: We paid the following by cheque G. Mutiso Kshs. 75,000, F. Kamau Kshs. 162,000
June 15: Paid carriage by cash Kshs. 69,000
June 18: Bought goods on credit form K. Musioka Kshs. 129,000, M. Kim Kshs. 330,000
June 21: Sold goods on credit to T. Big Kshs. 201,000
June 30: Paid rent by cheque Kshs. 54,000
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