Kindly help, i usually get confused though i watched the lecture. My question is I managed to answer all the other questions except for the two.
To extract the TB you enter the information in appropriate ledger accounts. am not sure about the following:
1. Depreciation charge of K1,500. I, DR depr expense a/c $1,500
CR statement OFP $ 1,500
Which one do i record in the trial balance?
2. cash prepaid of $900 for rent and owing amounting to $500 for water. This one got me confused on how to write the ledger accounts and what to record for the trial balance.
kindly explain sir.
Ask the Tutor ACCA FA
Ledger Accounts
10y ago#1The trial balance is usually prepared immediately the bookkeeping has finished, but before doing the year-end adjustments (depreciation, accruals and prepayments, irrecoverable and doubtful debts, and inventories).
So for 1, in the TB will appear the balance on the Accumulated depreciation account before entering this years depreciation.
For 2, the TB will again be prepared before making the entries for the prepayment and the accrual and therefore what will appear is the balance on each of the two accounts before those entries are made.
I don't know which lecture you have watched, but if you watch the lectures in chapter order then the entries for depreciation and for accruals and prepayments are all covered in full.
Thank you Sir.
10y ago#3You are welcome :-)
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