08-18-2009, 01:37 AM
I cannot solve this for you, but will give you some good tips that I hope will definitly help you now and in future as well..
Step 1 Check whether trial is tally.. If yes then no problem and most of the times it does.
Step 2 Make four parts of the trial
a) Income
b) expenses
c)Assets
d) Liabilities
Few items are counter assets (like accumulated depreciation) keep those at the side of liability.
Step 3 Total the four parts individualy as you get income expenses, assets and liablities figures separatly.
Step 4 Now put these figures in financial statements, keeping space for the adjusting entries.
(After you put the figures in financials you will see the financial statements are tally at this stage.)
Now you have to make the adjusting entries and always remember every adjustement would have two opposite effects as it is the theme of accounting.
Example £5000 of wages werenât paid by the end of the year. means outstanding.
Debit Wages account 5,000
Credit Wages payable account 5,000
at one side it has decreased the liability side of balance sheet by debiting. ( increasing expense means decreasing profit means decreasing equity means decreasing liability side)
and one side it increases the liablity side by crediting.
So net effect remaining nill. Financials will be still tallied
Do all adjustments in like manner.
I hope this will work
Regards
Waqas
Step 1 Check whether trial is tally.. If yes then no problem and most of the times it does.
Step 2 Make four parts of the trial
a) Income
b) expenses
c)Assets
d) Liabilities
Few items are counter assets (like accumulated depreciation) keep those at the side of liability.
Step 3 Total the four parts individualy as you get income expenses, assets and liablities figures separatly.
Step 4 Now put these figures in financial statements, keeping space for the adjusting entries.
(After you put the figures in financials you will see the financial statements are tally at this stage.)
Now you have to make the adjusting entries and always remember every adjustement would have two opposite effects as it is the theme of accounting.
Example £5000 of wages werenât paid by the end of the year. means outstanding.
Debit Wages account 5,000
Credit Wages payable account 5,000
at one side it has decreased the liability side of balance sheet by debiting. ( increasing expense means decreasing profit means decreasing equity means decreasing liability side)
and one side it increases the liablity side by crediting.
So net effect remaining nill. Financials will be still tallied
Do all adjustments in like manner.
I hope this will work
Regards
Waqas
