Mr. ABC has the following transactions in the month of January. Write the Journal Entries for the transactions and post it into ledger. Date Transaction Amount (Rs) 1 Jan,2018 Paid rent for office during January 3520 2 Jan,2018 Placed advertising in local newspaper for publication during January. The agreed price of was payable within 10 days after the end of month. 860 3 Jan,2018 Cash receipts from passengers for the 1st half of January 780 4 Jan,2018 The owner withdrew cash for personal use 778 5 Jan,2018 Paid salaries to employees for services rendered in first half of January 560 6 Jan,2018 Provided transportation for executive of Hurley Corporation, a longtime credit to customer. Sent bill for due within 30days 5000 7 Jan,2018 Received a bill from western oil Co for fuel used in January, payable by February, 10 9000 8 Jan,2018 Paid to Stevens Motors for repair and maintenance work during January 1200
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.
Mr. ABC has the following transactions in the month of January. Write the
|
Date |
Transaction |
Amount (Rs) |
|
1 Jan,2018 |
Paid rent for office during January |
3520 |
|
2 Jan,2018 |
Placed advertising in local newspaper for publication during January. The agreed price of was payable within 10 days after the end of month. |
860 |
|
3 Jan,2018 |
Cash receipts from passengers for the 1st half of January |
780 |
|
4 Jan,2018 |
The owner withdrew cash for personal use |
778 |
|
5 Jan,2018 |
Paid salaries to employees for services rendered in first half of January |
560 |
|
6 Jan,2018 |
Provided transportation for executive of Hurley Corporation, a longtime credit to customer. Sent bill for due within 30days |
5000 |
|
7 Jan,2018 |
Received a bill from western oil Co for fuel used in January, payable by February, 10 |
9000 |
|
8 Jan,2018 |
Paid to Stevens Motors for repair and maintenance work during January |
1200 |
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