Methods of preparing Trial balance There are two common trial balance methods used for preparing trial balances: the Total Method and the Balance Method. Total Method: With the Total Method, the total of all debit balances and the total of all credit balances in each account can calculate separately. These totals then compare, and if… 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 »
Journal entry for rent paid The journal entry for rent paid depends on the method of payment. Here are some examples: Rent paid by cash: Debit Rent Expense Account Credit Cash/Bank Account Rent paid by cheque: Debit Rent Expense Account Credit Bank Account Rent paid in advance: Debit Prepaid Rent Account Credit Cash/Bank Account To… 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 »
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 »
