Daybook Accounting Website Link Daybook Accounting: In accounting, a daybook (also known as a journal) is a primary record where daily transactions are initially recorded. It serves as the first step in systematically documenting accounting transactions. The daybook serves as the initial recording location for transactions before they are transferred to the general ledger… 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 »
Journal entry for Accounts Payable Journal Entry for Accounts Payable, The journal entry for an account payable and accounts receivable will depend on the specific transaction that is being recorded. However, here are some general examples of journal entries for these accounts: Journal entry for account payable (when a company purchases goods or services… Read More »
Prepaid exp. vs. Accounts Receivable Prepaid expenses and accounts receivable are both important financial concepts in accounting, but they represent different types of transactions. Prepaids expenses It refers to payments that a company makes in advance for goods or services that it expects to receive in the future. For example, if a company pays… Read More »
The journal entry accrued interest The journal entry for accrued interest will depend on the specific circumstances of the transaction. However, in general, the journal entries for accrued interest is: Debit: Interest Expense Credit: Interest Payable To visit https://www.mca.gov.in This journal entry records the interest expense that has been incurred by the company but has… Read More »
Types of Financial Transactions There are various types of financial transactions that can impact a company’s assets, liabilities, and owner’s equity. Here are some examples: 1.Inventory purchase: This transaction increases the company’s assets (inventory) and its liabilities (accounts payable). To visit- https://www.mca.gov.in/ 2.Selling goods on credit: This transaction increases the company’s assets (accounts receivable) and… Read More »
Bookkeeping and Accounting Bookkeeping and accounting are related to each other and often used interchangeably, but they are not the same thing. Here are some differences between bookkeeping and accounting: 1. Book keeping is the recording and organizing of financial transactions, while accounting involves interpreting, analyzing, and summarizing financial data. 2. Book keeping involves… Read More »