Sport Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have a debtors control account in the general ledger. The balance of the debtors control account at 1 May 2021 is R169 200. The following information was provided for the month ending 31 May 2021: NB: Insert the amount of R4 500 for the credit note in additional amount 3.4 1. Journals provided the following totals for relevant transactions: For the month ended 31 May 2021: R Sales journal: Debtors column 762 000 Sales returns journal 6 300 Cash receipts journal: Debtors column 586 800 2 100 General Journal: Interest charged on overdue debtors' accounts General Journal: Debtors balances written off as irrecoverable 2 700 2. The debtors ledger clerk submitted the following: List of debtors balances as at 31 May 2021 - debit balances C Gale 31 500 H Bolt 132 300 G Hunt 182 700 I Khune 18 900 R Nadal 9 000 3. Additional information to be taken.into.account (not included in the above): 3.1 No entry has been made for a credit sale of goods to C Gale for R 5 400. 3.2 R Nadal's account must be written off as irrecoverable.
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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