July Received from Henry Sy cash investment of P250,000 and merchandise worth P60,000. Sales invoice # 827 for sales on account to Dada Store, P17,800 Cash sales total, P28,500. Granted allowance on the Sales Invoice No. 827 due to error in delivery, P780. Received telephone bill, P550. Received bank loan proceeds, principal amount, P50,000; interest deducted in advance, P500, and issued 30-day interest bearing note. Paid telephone bill with check No. 10387. Purchased tables and chairs from prime Furniture House, P35,000. Terms: 10% down payment with check no. 10388, 2/10, n/30. Purchased merchandise from General Merchandisers, P60,000. Terms: 20% down payment with check no. 10389 Paid salaries, P20,000, issued check no. 10390 less 10% withholding tax. Purchased merchandise from Ever Company, P7,500. Terms: COD, issued check no. 10391. Purchased merchandise on account from Dale Manufacturers, P75,000. Terms: 1/15, n/30. Received cash refund from Ever Company for merchandise returned đue to defects, P900, (without VAT) Paid amount due General Merchandisers, with check no. 10393. 2 3 4 5 10 11 13 14 15 16 18 19 19 20 Received allowance from Dale Manufacturers due to defects on merchandise received, P1,000, without VAT. Sold merchandise for cash with a list price of P30,000 and a trade discount of 10% 21
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.
just the entries for this one
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