Distribution Journal Entry is to record the payment of a portion of earnings to the Members or Partners of the Entity (Partnership or LLC). Have you ever seen the Statement of Equity in a Partnership or LLC Financial Statements? The primary activity in that statement will … [Read more...] about Distribution Journal Entry
Misstatements
Misstatements are inappropriate data in the books of accounts or entirely wrong information. Hence it is an error. Example: Recording personal expenditure in company books of accounts. That's a Misstatement in the books, and it is improper recording of the transaction in the … [Read more...] about Misstatements
Audit Risk Assessment Process
Risk Assessment involves: How is Risk Assessment performed ? Risk assessment is an iterative process that occurs throughout the audit period. So, this process is dynamic. It's an ongoing process during the period under audit. Based on audit findings, risk assessment … [Read more...] about Audit Risk Assessment Process
Creditors Journal Entry
Are you pondering about how to record the Creditors Journal Entry? Don't worry! We have got you covered. Lets peel each of the exteriors to enjoy the fruit. We will start with some basics here. Creditors fall under Current Liability Those are Suppliers of Goods … [Read more...] about Creditors Journal Entry
Contingent Assets
What are Contingent Assets? A contingent asset is a How does the Gain arise? The Gain arises from transactions or events, the outcome of which is not certain as of date. How about an example here? For example, a firm may have a legal claim against another … [Read more...] about Contingent Assets
