Trial balance Land and premises 2000000 Furniture 120000 Inventory (01/04/19) 80000 Import on duty 4000 Wages of contract workers 46000 Salaries 64000 Carriage for goods purchased 5200 Carriage for goods sold 12400 Discounts 24900 25080 Purchases and sales 705200 237252200 Rent 11200 13000 Commission 15600 17400 Bills receivable 10800 12% investment (1/10/19) 136000 Donation to national fund 12600 10% bank loan 112000 Factory rent 64000 Receivables and payables 920000 240000e Bank 728000 Bad debts 66000 Provision for doubtful debts 20000 Rates and taxes 31200 Brokerage Capital Queen corona 500000 Queen covid 500000 Current account Queen corona 20000 Queen covid 128000 Additional information Due to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%. They agreed to provide for discount on receivables at 5%. All property, plant and equipment are to be depreciated at 10%. The business claimed insurance of GHc 21000 for goods that were lost due to the insurance claim though admitted had not been paid at the year. Queen corona took goods amounting to GHc 17400 for personal use. Goods worth GHc 24000 bought on 24/04/19 on credit were not recorded in the books. Outstanding salaries were GHc 2000 whereas wages of GHc 24600 were not paid in advance. The partners agreed to charge interest on capital at 6% and drawings at 7%. Bills received of GHc 12600 was dishonoured. The inventory count at the year ended revalued goods worth GHc 300000. (a )What is the profit/loss for this company. (b). What is the working capital?
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.
Question 1.
Land and premises 2000000
Furniture 120000
Inventory (01/04/19) 80000
Import on duty 4000
Wages of contract workers 46000
Salaries 64000
Carriage for goods purchased 5200
Carriage for goods sold 12400
Discounts 24900 25080
Purchases and sales 705200 237252200
Rent 11200 13000
Commission 15600 17400
Bills receivable 10800
12% investment (1/10/19) 136000
Donation to national fund 12600
10% bank loan 112000
Factory rent 64000
Receivables and payables 920000 240000e
Bank 728000
Provision for doubtful debts 20000
Rates and taxes 31200
Brokerage
Capital
Queen corona 500000
Queen covid 500000
Current account
Queen corona 20000
Queen covid 128000
Additional information
Due to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.
They agreed to provide for discount on receivables at 5%.
All property, plant and equipment are to be depreciated at 10%.
The business claimed insurance of GHc 21000 for goods that were lost due to the insurance claim though admitted had not been paid at the year.
Queen corona took goods amounting to GHc 17400 for personal use.
Goods worth GHc 24000 bought on 24/04/19 on credit were not recorded in the books.
Outstanding salaries were GHc 2000 whereas wages of GHc 24600 were not paid in advance.
The partners agreed to charge interest on capital at 6% and drawings at 7%.
Bills received of GHc 12600 was dishonoured.
The inventory count at the year ended revalued goods worth GHc 300000.
(a )What is the
(b). What is the
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