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 Post needs to purchase Stamps depending on the Pin code and weight of the Postal Cover. The usage of … [Read more...] about Bought Postage Stamps Journal Entry
What does Audit Documentation Deals with?
Audit documentation deals with the questions Audit documentation means the context of how the auditor and their team rationalize the testing performed. Work not documented means work not performed. So, such documentation shall be robust, and there should not be any scope … [Read more...] about What does Audit Documentation Deals with?
Journal Entry Testing
Journal Entry testing is a financial checkpoint. What's the purpose of this test? In other words, it's a kind of testing the GL dump with all entries for a specific period. How about an example to understand the purpose? Consider an entity that is primarily financed … [Read more...] about Journal Entry Testing
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 Cash can be withdrawn for Personal drawings are not for business.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