Cash withdrawal is a contra entry. Here, this JE involves Cash & Bank GL. Cash can be withdrawn for Personal drawings are not for business. How about an example? The owner pays his rent with office cash. It doesn't facilitate business in any way. Let's … [Read more...] about Withdrew Cash Journal entry
Old Newspaper Sold Journal Entry
The sale of old newspapers yields income. It's a non-operating activity. So, it falls under other income. Why is it part of other income? That's because those cash inflows do not primarily contribute to sustaining the business. In General, business entities … [Read more...] about Old Newspaper Sold Journal Entry
Goods Given as Charity Journal Entry
Goods given as charity Journal entry is recorded by reducing the value of the goods and increasing the charity expenses. Entities exist with a primary objective of earning profits. However, entities might give donations or charity, either cash or in-kind. Donations in the form of … [Read more...] about Goods Given as Charity Journal Entry
Advantages of Internal Control System in Auditing
Any Business exists to achieve its primary objective. Such objectives can be Profit or service-oriented. Each organization comprises various departments. Each department can function effectively only if Here, controls are specific rules or standards. Each … [Read more...] about Advantages of Internal Control System in Auditing
Paid freight journal entry
Freight is an expenditure relating to the transportation of goods by any medium, such as train, ship, road, or aircraft. Said differently, it’s nothing but carriage inwards or carriage outwards. Carriage inward and carriage outward relate to the purchase and sale of goods, … [Read more...] about Paid freight journal entry