GENERAL LEDGER Flax Dealers employs a full-time bookkeeper. However, the bookkeeper absconded and Mr Kramer, the owner, approached you for assistance. He is unsure of how to post the subsidiary journals to the General Ledger accounts. Mr Kramer provides you with the following information extracted from the subsidiary journals for March 2021. Flax Dealers also needs your assistance with some of the information, as Mr Kramer is not sure what the amounts should be. Cash Receipts Journal of Flax Dealers for March 2021 Sundry Amount Details 11 112 Cost of Debtors Bank Sales Sales Control Fol. 52 096 40 700 49 908 Cash Payments Journal of Flax Dealers for March 2021 Creditors Sundry Inventory Bank Wages Control Amount Details Fol. 87 747 68 116 ? 6 866 1 245 Debtors/Sales Journal of Flax Dealers for March 2021 Debtors Control Sales Cost of Sales 29 824 23 300 Creditors/Purchases Journal of Flax Dealers for March 2021 Creditors Control Sundry Details Inventory Amount Fol. 57 553 51 303 6 250 From the previous month's trial balance, it was established that the opening balances of selected accounts are as follows: Bank (favourable) R80 496 Debtors control R37 914 Creditors control R36 612 Required: Complete the missing information and post to the General Ledger accounts listed below. 1.1. Bank account 1.2. Debtors control account 1.3. Creditors control account
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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