How to Record Account Receivable (AR) Account Receivable (Trade receivables) arise when a business makes sales or provides a service on credit. Recording Account Receivable as follows: Credit Sale If company made sale on credit, the entries are as follow. Dr. AR…………………xx Cr. Sale…………………..xx (Merchandising or manufacturing company normally use word “Sale”) Dr. AR……………….xx Cr. Service Revenue…….xx (Service Company normally uses
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Accrued Expense | Accrual An accrual Expense ( accrual) is an expense that has been incurred, but we have not received an invoice. We will receive invoice next accounting period. Accounting standard required company recognize expenses incurred even if invoice are not received or payment. Accrual is liability. For simple example, your company use electricity for December 2017, but electricity
Continue reading Job Description and Requirement for Secretary Below are job description, responsibility and requirement that candidates and HR department should know. Job Responsibilities: Prepare and create document Note management meeting Schedule Management Prepare report for vice president Make report for management meeting Plan,monitor and organize event where needed Remind Directors for important task and its deadline Type, compile and prepare report
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Withholding tax on service for resident physical person Any resident taxpayer carrying on business and who makes any payment in cash or in kind to a resident physical person, so taxpayers need to withhold tax before payment if resident physical persons provide services to taxpayers. This tax is withheld on service, but not goods or product. Example 1 Mr. A
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All Depreciation Methods for Fixed Asset | Non-Current Asset After you read this article, you will know all depreciation methods. There are many depreciation methods such as straight-line, declining-balance, double declining balance, units-of-production and sum-of-the-years’ digits. Each depreciation method that can be used is based on actual physical usage or nature of the fixed asset. Example 1 Assume that
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How to record full inventory cost for manufacturing company There are three types of inventory for manufacturing company: raw material, work-in-progress (also known as work-in-process or abbreviation as WIP), and finished goods. Inventory is current asset. Raw material inventory has not yet been put into production. They are stored in warehouse before covert them to work-in-progress (WIP) and finished goods. Raw
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Realized or Unrealized gain (loss) of Taxation for foreign-currency transaction After you read this article, you will understand about Realized or Unrealized gain (loss) Foreign-currency transaction A foreign-currency transaction is transaction that requires settlement, either receipt or payment, other foreign currency. When the exchange rate changes between the original sale or purchase transaction date and the settlement date, there is
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Absorption Costing (AC) and Activity- Based Costing (ABC) for Inventory Freight | Transportation Absorption costing is traditional costing method while Activity- Based Costing ( ABC) is modern costing method. Absorption costing is simple way and less time consuming for calculation, but Activity-Based Costing ( ABC) is complex way and more time consuming. Activity-Based Costing ( ABC) is more accurate than
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How to calculate special depreciation for Qualified Investment Project (QIP) A company is large business registered at Ministry of Commerce ( MOC) and General Department of Taxation ( GDT) respectively. Also, this company is granted Qualified Investment Project (QIP) status by the Council for the Development of Cambodia (CDC), so company has two options for tax. For first option, Company can
Continue reading Patent Tax Amount for Small, Medium and Large business The Patent Tax is yearly payment, and the patent tax is applied on total annual turnover. It is paid by the end of 31 March every year. Patent amount will be paid based on size or kind of company or organization as follows. For small business, you will patent tax 400,000
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