Identifying the GLs is the first and foremost step in recording any transaction. The GLs in the Purchase goods for Cash transactions are Goods GL and Cash GL. Its general practice to record all transactions relating to the inventory or stock of goods through any of the following … [Read more...] about Purchase Goods for Cash Journal entry
Accounting
Advertisement journal entry
Advertisement helps in marketing. It's a core indirect expenditure. What's the purpose of ads? Thanks for the new digital era! The advertising medium has undergone drastic changes in recent years due to digital marketing. This paid advertisement journal entry is … [Read more...] about Advertisement journal entry
Bought Postage Stamps Journal Entry
Posts help communicate a message from one place to another and facilitate the delivery of goods. The charges for such service are levied in the form of Stamps. So, the Sender of the Post needs to purchase Stamps depending on the PIN code and weight of the Postal Cover. The usage … [Read more...] about Bought Postage Stamps Journal Entry
Withdrew Cash Journal entry
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 Cash can be withdrawn for Personal drawings are not for business.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