Journal entry for mileage expense is to record the business expenses. However, the way business incurs is through different medium. Employees need to travel as part of their work responsibilities. Business doesn’t necessarily incur expenditures in its name. Its … [Read more...] about Journal entry for mileage expense
Accounting
Journal entry for new vehicle purchase
Journal entry for new vehicle purchase is to record an asset. It is supposed to be for business purposes. In other words, the purchase of a car for personal purposes will not qualify for recording in the books. We need to understand the mode of acquisition before … [Read more...] about Journal entry for new vehicle purchase
Trial Balance vs Balance Sheet
Trial balance vs Balance sheet is not a competition analysis. These are different statements in financial reporting. It's important to understand that a trial balance is an accounting tool used to verify the correctness of accounting entries. In contrast, a balance sheet … [Read more...] about Trial Balance vs Balance Sheet
Fixed asset reconciliation
Fixed Asset Reconciliation comprises of below two activities Are you wondering why these are called Fixed Assets? The word "Fixed" doesn't necessarily imply immovable. Instead, these assets will exist in the business for a longer time. Benefits keep flowing … [Read more...] about Fixed asset reconciliation
Loose tools in final accounts
Loose tools are simple instruments, devices, or equipment that aid in improving the function of fixed assets. These tools don’t bring a significant operational change but are merit-worthy in catering to the business needs. For example, a screwdriver helps fix the screws of … [Read more...] about Loose tools in final accounts