Rent Paid Journal entry results in Rent is a payment for property use. What does Properties mean? House, Buildings, Machinery, Car, etc. Is there any limitation on purpose? Nope. It can fall into any of the following purposes Therefore, there are no … [Read more...] about Rent Paid Journal Entry
Interest on Capital Journal Entry
An interest on Capital Journal Entry is similar to an entry relating to an interest expenditure incurred by the entity for its loans or borrowings. So, Interest on Capital is also an expense to the business. Let me explain how this guide flows. First, I will explain the reason … [Read more...] about Interest on Capital Journal Entry
Physical Verification of Stock
Stock audits verify an entity's goods' existence, completeness, and rights. They are usually associated with the physical verification of stock. What's the testing approach for the Inventory Audit? The audit team performs substantive audit procedures, such as testing … [Read more...] about Physical Verification of Stock
Travelling Expenses – Meaning, Examples and Journal Entries
The name itself indicates that this traveling expense relates to expenses incurred by entity employees or directors. The purpose of travel shall be related to the entity's business operations. Therefore, the purpose shall not be personal. Traveling expenses … [Read more...] about Travelling Expenses – Meaning, Examples and Journal Entries
Staff Welfare Expenses
Staff Welfare Expenses (SW) are the expenses incurred to benefit the entity's employees. These expenses are not like direct payments to employees working for the business. SW expenses can be non-monetary, such as Gifts, Refreshments, reimbursements to employees for … [Read more...] about Staff Welfare Expenses