The following is the trial balance extracted from the books of the heavy equipment company :on 12/31/2019 Debit balance account name box credit 9920 Owe Goods at the beginning of the period Prepaid insurance expenses Insurance expenses Machinery and equipment Stationery and supplies Stationery expense Machinery consumption complex Machinery depreciation expense Creditors capital Personal withdrawals the sales Sales returns and allowances Sales discount allowed Purchases 39360 72000 960 1920 51200 112 688 15360 5120 26624 96000 7200 442400 5440 4160 304000 Returns and allowances of purchases Purchase discount (earned) Purchasing transportation expenses Payroll expenses payable Salary expense Rental expense General maintenance expenses Total 2816 1920 7360 640 51840 22400 2080 585760| 585760 If you know that the value of the merchandise at the end of the period was 50,000 dinars : Required .Record the closing restrictions in the general journal Photocopy of the trading account for the year ending 12/31/2019
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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