Journal Entry for Interest Paid The journal entry for interest paid depends on the type of transaction and the accounting method used by the company. Generally, when a company pays interest on a loan or a debt. The following journal entry is recorded: Debit Interest Expense (Income Statement) Credit: Cash/Bank (Balance Sheet) The “Debit” entry… Read More »
PF (Provident Fund) number PF number lookup using employer’s name: To get your PF (Provident Fund) number using your employer’s name, you can follow these steps: Visit the EPFO website (Employees’ Provident Fund Organisation). Click on the “For Employees” option and select “Know Your PF Balance” from the drop-down menu. Select your state and click… Read More »
Introduction Accounting plays a crucial role in financial management, and maintaining accurate records is essential for tracking cash transactions. Two of the most fundamental tools used in accounting are the cash book and the ledger. While both are essential for recording financial transactions, they serve different purposes. The cash book primarily records cash-related transactions, whereas… Read More »
Debit Balance in Accounts Payable A debit balance in accounts payable refers to a situation where the amount owed by a company to its suppliers or creditors exceeds the amount of payments made to them. It represents an outstanding liability that has not yet been settled. Typically, accounts payable is recorded as a credit balance… Read More »
What is invoicing Invoicing refers to the process of creating and sending a document that requests payment for goods or services that have been provided. An invoice usually contains information such as the seller’s name and address, buyer’s name and address. A description of the goods or services provided. And other relevant details such as… Read More »
Verifying GST Registration of a Company Verifying GST registration of a company, Statutory audit and tax audit are two distinct types of audits conducted for different purposes. Statutory audit: A statutory audit is perform to ensure that a company’s financial statements provide an accurate and fair view of its financial position and performance. It is… Read More »
A debit entry in cash book journal For instance, when a company uses cash to acquire office supplies, it would record a debit entry in the cash book journal to decrease the cash account (an asset) and reflect the expense incurred. It is a mandatory entries for making balance sheet. For instance, when a company… Read More »
User Intent Understanding the importance of preparing a trial balance is crucial for businesses, accountants, and finance professionals. This article provides a step-by-step breakdown of why preparing a trial balance is necessary, how it is applied, its benefits and limitations, and a comparative analysis. Readers will gain clear insights into this essential accounting process. Introduction… Read More »
User Intent Users searching for this topic want to understand the fundamental accounting principle behind debiting expenses and crediting revenues. This article explains this concept in detail, covering definitions, applications, benefits, limitations, and comparisons. Introduction Accounting principles are the backbone of financial reporting, ensuring transparency and accuracy in financial transactions. One of the most… Read More »
Journal vs. General Ledger Website link Journal vs. General Ledger: A journal and a general ledger are two essential components of the accounting process, each serving a distinct purpose. The primary difference between them lies in the level of detail and organization they provide. A journal is the initial recording tool where transactions are first… Read More »