Computer purchases is a financial transaction. It is recorded per certain rules Those are Golden Rules of Accounting. Such a recording process includes: Steps to Record the Purchased Computer Journal Entry We need to follow the above steps. so, let's break … [Read more...] about Computer Purchase Entry
PV Ratio Formula
Every Business Model seeks to earn profit by selling services or goods to customers. The first steps in this process are planning and preparation. Budgeting is a component of such preparation. Budgets estimate the costs of acquiring raw materials, purchasing machinery, … [Read more...] about PV Ratio Formula
Cheque deposit JE
Cheque deposit results inflow of funds. We will understand JE in Q&A form. What does Cheque deposit mean? Its a receipt from the debtors. Where is Cheque deposited? Deposit happens in Banks How to record the Journal Entry? Identify the GL accounts … [Read more...] about Cheque deposit JE
Electricity Journal Entry
Record Paid Electricity Journal Entry by What's the purpose of Electricity JE? To Records the power usage charges. It can be direct or indirect expense. How about an example here? Consider an Entity. Its into goods manufacture. Assume it is a automatic … [Read more...] about Electricity Journal Entry
Bad Debts Journal Entry
Bad debts are losses to the business. What's the reason for losses? Because debtors did not pay their dues. So, these are unrecovered receivable. Therefore, entity needs to post a JE by Such loss due to debtors is a bad debt. Can there be recovery of bad … [Read more...] about Bad Debts Journal Entry