What are Contingent Assets? A contingent asset is a How does the Gain arise? The Gain arises from transactions or events, the outcome of which is not certain as of date. How about an example here? For example, a firm may have a legal claim against another … [Read more...] about Contingent Assets
Unbilled Accounts Receivable
Unbilled accounts receivable is also an accounts receivable which is not invoiced to the customers. So, it's a revenue where there is a postponement of billing. This GL forms part of the current asset in the Balance Sheet. How do Unbilled accounts receivable … [Read more...] about Unbilled Accounts Receivable
Cash Dividend Journal entry
The dividend is a way of sharing profits with investors. Do you know the reason to Pay Dividends? Those are significant motivating factors for driving business investments. So, Companies tend to declare dividends to its shareholder. We must follow several steps to … [Read more...] about Cash Dividend Journal entry
Vouching Vs Tracing
Vouching and Tracing are auditing techniques Whats the purpose? Vouching begins by taking a sample of transactions and examining their supporting documents to confirm they are genuine. Tracing, however, tracks transactions from their source documents through accounting … [Read more...] about Vouching Vs Tracing
Topside Entry and its Accounting
A topside entry is an accounting journal entry used to correct or adjust the GL Accounts. Topside entries will not be recorded in the Sub Ledgers. Those are posted directly in the General ledgers Why record a topside entry? It adjusts the account balances without … [Read more...] about Topside Entry and its Accounting