Daybook Accounting 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 or subsidiary… Read More »
Debit expenses and Credit revenues In accounting, we debit expenses and credit revenues because it follows the principle of double-entry bookkeeping. This principle states that every financial transaction has two equal and opposite effects: a debit entry and a credit entry. To visit- https://www.mca.gov.in/ Expenses always come in debit because they represent a decrease in… 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 »
What are the different types of financial transactions and its effects to the assets, liabilities, and owners equity? Financial transactions are the backbone of any business’s accounting system. These transactions impact a company’s financial statements, affecting its assets, liabilities, and owner’s equity. Understanding these effects is crucial for accurate financial reporting and analysis. Types of… Read More »
Bookkeeping types There are two main Bookkeeping types: Single-Entry Bookkeeping: Single-entry bookkeeping is a simple method that involves recording each financial transaction only once. This method is often used by small businesses with few transactions. In single-entry bookkeeping, a record is made of each transaction in a journal or ledger, with one entry made for… Read More »
