Cash Account Repair equipment Account Date Particular Amount Date Particular Amount Date Particular Amount Date Particular Amount Jan To Manarang Jan 2 Capital A/c 5000 Jan 3 By rent expenses 200 Jan 5 To Cash A/c 1000 31 By balance c/d 3000 To Accounts payable To Service By repairing equipment By supplies Jan 8 400 Jan 5 1000 Jan 5 2000 Income To Service Jan 30 Income 480 Jan 9 350 expenses 3000 3000 By accounts payable Jan 15 1000 By Salaries Jan 20 100 expenses Accounts Payable Account By Manarang withdrawls. Jan 25 500 Date Particular Amount Date Particular Amount By repairing equipment Jan 31 By balance c/d 2730 Jan To Cash A/c 1000 Jan 5 2000 15 Jan 5880 5880 To Balance c/d 1000 31 2000 2000 Manarang capital Account Date Particular Amount Date Particular Amount Jan 31 To Balance c/d 5000 Jan 2 By cash A/c 5000 Service Revenue Account Date Particular Amount Date Particular Amount 5000 5000 Jan 31 To Balance c/d 1130 Jan 8 By cash A/c 400 Jan 30 By cash A/c 480 By Accounts Jan 31 receivable Rent expense Account 250 Date Particular Amount Date Particular Amount Jan 1130 1130 Jan 3 To Cash A/c 200 By balance c/d 200 31 200 200
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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