General Journal Entry for Accounting: All accounting transactions are recorded through journal entries that show account names, amounts, whether those accounts are recorded in debit or credit side of accounts, and description. 1. Debits and Credits/Double Entry Under the double-entry system, every business transaction is recorded in at least two accounts. One account will be “debit” entry, meaning the amount will be
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Adjusting Entries for Liability Account Types: Adjusting entries for liability accounts include account payable, unearned revenue, note payable and payroll payable, so we will discuss these accounts as follows. 1. Accounts Payable (AP)/Trade Payable Accounts Payable is a liability account that reports the amounts owed to suppliers or vendors at balance sheet date. Under the accrual basis of accounting, expenses
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Adjusting Entries for Asset Account Types Adjusting entries for asset accounts include account receivable, cash, fixed asset, office supply and prepaid expenses, so we will discuss these accounts as follows. 1. Accounts Receivable/Trade Receivable Accrual Basis of Accounting: Under the accrual basis of accounting, the balance sheet must report all the amounts the company has an absolute right to receive economic
Continue reading Purpose of Issuing Petty Cash Voucher : Petty cash voucher is a record of expenditure from a petty cash fund for which a receipt was not received. Petty cash funds are maintained to provide a company with fast access to small amounts of cash for minor, non-routine purchases. Petty cash vouchers are used to maintain financial control of petty cash accounts,
Continue reading Purpose of Issuing Payment Voucher : Payment Voucher ( PV) is document which can be used as proof that a monetary transaction has occurred between two parties. In business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a transaction or indicating that an invoice has been approved for payment. Who
Continue reading Purpose of Issuing Sale Order (SO) : A sales order is a document that confirms a sale. It is generated when a buyer communicates that he wants to purchase a product. It is seller-generated document that authorizes sale of the specified item(s), issued after receipt of a customer’s purchase order. A sales order is an internal document of the company,
Continue reading Purpose of Issuing Goods Received Note ( GRN): Goods received note (GRN) is recorded of goods received at the point of receipt. This record is used to confirm all goods have been received and often compared to a purchase order before payment is issued. Who issues Goods Received Note ( GRN) : Goods received note(GRN) is produced by warehouse/store department (internal
Continue reading Purpose of Issuing Purchase Request Purchase request is document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the timeframe. It may also contain the authorization to proceed with the purchase. Also called purchase request or requisition. Who issues purchase request Purchase request filled out by store department or
Continue reading Purpose of Issuing Purchase Order A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance
Continue reading CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND ASSOCIATES Learning Objectives Introduction The Basic Principles for Consolidating the Statement of Profit or Loss Non-Controlling Interest Intra-Group Trading Mid-Year Acquisitions IAS 28 Investments in Associates and Joint Ventures Trading with the Associate ………………………………………………………………………………………….. I. Introduction The consolidated statement of profit or loss presents the financial performance of all group entities (i.e.
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