Archive about 'Adjustments to Final Accounts'

Answers to Questions On True Or False On Final Accounts

Tweet Answers  to Questions On Final Accounts True False 1.0 The income statement shows either net profit or net loss for a particular period X 2.0 Gains from the sale or exchange of assets are not considered as the revenue of the business X 3.0 The salary paid in advance is not an expense because […]

Questions On True Or False On Final Accounts

Tweet QUESTIONS [ click here for ANSWERS] True False 1.0 The income statement shows either net profit or net loss for a particular period 2.0 Gains from the sale or exchange of assets are not considered as the revenue of the business 3.0 The salary paid in advance is not an expense because it neither […]

Expenses Unpaid For Accrual Purpose

Tweet This article deals with expenses unpaid for which are adjusting entries that for the final accounts or balance sheet First, we look at what are some instances of expenses unpaid for,  how we take up such expenses and understand the accounting entries for over or under taking up of such accruals/accrued expenses.   Instances […]

Listing Of Some Adjustments To Final Accounts And Balance Sheet

Tweet Once a Trial Balance has been extracted, next it is necessary to adjust the ledger accounts before preparing the final accounts and Balance Sheet   APPEND BELOW SOME OF THE ADJUSTMENTS TO THE FINAL ACCOUNTS AND BALANCE SHEET Expenses paid in advance/ Prepayments Expenses incurred but have not been paid Income received in Advance […]

Answer To Accounting Test Question AOF No. 1 On Adjustments To Final Accounts

Tweet Answer to Accounting Test Question AOF No.1: Insurance Account 2005 $ 2005 $ Jun 30 Balance b/d 486 Jun 30 Advertising 39 Profit & Loss 411 Balance c/d 36 486 486 Motor Vehicle Account 2005 $ 2005 $ Jun 30 Balance b/d 21,379 Jun 30 Disposal of motor vehicle 5,310 Balance c/f 16,069 21,379 […]

Accounting Test Question AOF No. 1 On Adjustments To Final Accounts

Tweet Accounting Test Question AOF No 1 On Adjustments To Final A/c Question: Mr. Steven is a retailer whose accounting year ends on 30 June 2005. He has extracted a Trial Balance, before producing his final accounts and the following are some of the balance included in that Trial Balance: Dr ($) Cr ($) Purchase […]

Answer to Accounting Test Question SP No 1 on Suspense Account

Tweet Answer to Accounting Test Question SP No 1 on Suspense Account Begin by opening the suspense account. Which side? More debit is needed to balance the trial balance, so debit the suspense account with $56,717. Then deal with the errors in order: Sales returns should have been debited to the sales returns account and […]

Accounting Question Test SP No 1: Suspense Account

Tweet Accounting Test Question SP No. 1 Company ABC’s bookkeeping system is not computerised, and at 31 st December 2005. William , the bookkeeper was unable to balance the accounts. The trial balance totals were as follows: Debit $ 2,024,100 Credit $ 2,080,817 Nevertheless, William proceeded to prepare draft financial statements, inserting the difference as […]

Accounting Treatment Of Revenues Received In Advance

Tweet Prepayments are expenses paid in advance and the unexpired up is accounted as current assets in the Balance Sheet. Vice versa, revenues received in advance are payment received from customers for work not yet done or goods to be delivered at some future date. So how do we treat revenues received in advance? Revenues […]

What are Prepayments And Its Accounting Treatment?

Tweet During the accounting cycle, prepayments form one part of the adjusting entries. After the draft trial balance is extracted, the bookkeeper will then look for adjusting entries like prepayments  to be expensed off into the Income Statement? So what are Prepayments? Prepayments or prepaid expenses are expenses paid in advance. They are actually economic […]