Record the following transactions for the month of January of a small finishing retailer, prepare and balance off all the accounts, then extract a trial balance as at 31 January 20X8, prepare statement of comprehensive income for the 31 January 20X8 and statement of financial position as at 31 January 20X8: 20X8 Jan 1 Started in business with RS10,500 cash. == 2 Put RS9,000 of the cash into a bank account. == 3 Bought goods for cash RS550. == 4 Bought goods on credit from: AliRS800; BasitRS930; SalmanRS160; AyanRS510. == 5 Bought stationery on credit from Buttons Ltd RS89. == 6 Sold goods on credit to: HarisRS170; BilalRS240; SubhanRS326; QasimRS204. == 8 Paid rent by chequeRS220. == 10 Bought fixtures on credit from Chiefs Ltd RS610. == 11 Paid salaries in cash RS790. == 14 Returned goods to: BasitRS30; SalmanRS42. == 15 Bought van by chequeRS6,500. == 16 Received loan from Faiza by chequeRS2,000. == 18 Goods returned to us by: HarisRS5; SubhanRS20. == 21 Cash sales RS145. == 24 Sold goods on credit to: BilalRS130; QasimRS410; KiranRS158. == 26 We paid the following by cheque: BasitRS900; SalmanRS118. == 29 Received cheques from: KiranRS158; BilalRS370. == 30 Received a further loan from Faiza by cash RS500. == 30 ReceivedRS614 cash from Qasim.
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.
Record the following transactions for the month of January of a small finishing retailer, prepare and balance off all the accounts, then extract a
20X8 Jan 1 Started in business with RS10,500 cash.
== 2 Put RS9,000 of the cash into a bank account.
== 3 Bought goods for cash RS550.
== 4 Bought goods on credit from: AliRS800; BasitRS930; SalmanRS160; AyanRS510.
== 5 Bought stationery on credit from Buttons Ltd RS89.
== 6 Sold goods on credit to: HarisRS170; BilalRS240; SubhanRS326; QasimRS204.
== 8 Paid rent by chequeRS220.
== 10 Bought fixtures on credit from Chiefs Ltd RS610.
== 11 Paid salaries in cash RS790.
== 14 Returned goods to: BasitRS30; SalmanRS42.
== 15 Bought van by chequeRS6,500.
== 16 Received loan from Faiza by chequeRS2,000.
== 18 Goods returned to us by: HarisRS5; SubhanRS20.
== 21 Cash sales RS145.
== 24 Sold goods on credit to: BilalRS130; QasimRS410; KiranRS158.
== 26 We paid the following by cheque: BasitRS900; SalmanRS118.
== 29 Received cheques from: KiranRS158; BilalRS370.
== 30 Received a further loan from Faiza by cash RS500.
== 30 ReceivedRS614 cash from Qasim.
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