If you're an accountant, you've probably heard of Contingent Liabilities. But what exactly are they? Those amounts can turn out to be a Liability depending on the occurrence of an event. For example, Consider a Law Suit. It is an event which is not in the hands of … [Read more...] about Understanding Contingent Liabilities with Example
Rent Receivable Journal Entry
Rent Receivable is an asset to the business It Falls under the current asset group. What's the Purpose of Recording Rent Receivable Entry? Accountants needs to capture every financial transaction precisely in the books of accounts. This is a driving step for building up … [Read more...] about Rent Receivable Journal Entry
Warranty Expense Journal Entry
Warranty Expense are an estimated costs that entity might incur in future against sale of goods or services provided. Warranties are a common practice in the business world. Entities use warranties as way to show their quality of the products and motivate buyers to choose … [Read more...] about Warranty Expense Journal Entry
Distribution Journal Entry
Distribution Journal Entry is to record the payment of a portion of earnings to the Members or Partners of the Entity (Partnership or LLC). Have you ever seen the Statement of Equity in a Partnership or LLC Financial Statements? The primary activity in that statement will … [Read more...] about Distribution Journal Entry
Misstatements
Misstatements are inappropriate data in the books of accounts or entirely wrong information. Hence it is an error. Example: Recording personal expenditure in company books of accounts. That's a Misstatement in the books, and it is improper recording of the transaction in the … [Read more...] about Misstatements