Accounting

How to provide an example of how the bookkeping sector might relate and interact with other sectors in the Financial Services Industry.

Accounting

Started business with cash rs.32000 & bank loan of rs 68000

Accounting

by TEBOHO
(PRETORIA)

Differenciate between balance sheet items and income statement item?

Accounting

Would you classify a gym as a service or sales business?????

Accounting Credit On Sales Tax Report

There is an accounting credit on the sales tax report you can deduct if you pay tax in timely manner. I know I want to debit it to sales tax payable but I can't figure out what to credit it to. Can anyone help?
Thanks

Accounting Date for Checks

by Pam
(San Diego, CA)

We use cash accounting. When we enter checks into our acounting system that we issue to pay our company's bills, what date should be recorded on the general ledger--the date on the check or the date on the bank statement showing when the check cleared the bank account?

This is a basic question (I think) that would seem to have a simple answer, but I can't find an answer anywhere. For example, this can also get tricky around year-end when you date a check 12/29 and it appears on the bank statement as 1/5.

Thanks in advance for your response.

Accounting for Designated Trip Allowance Within My Check Book

by Lawrence Rae
(Canada)

We were given a large gift for a medical trip to India. I placed the money in my checking account. Is there a way to account for that trip within my checkbook while still entering the items in the register to balance at the end of the month? Or, do I have to put the money in a different bank account to track the expenditures for the trip while I balance my present checkbook?

Accounting for Donations

If i have some cash coming in from selling cookies or car wash, how do I record that in by books?

Donations?
Thanks!

Accounting For Food Purchased For Research And Photography

by Mark
(NH)

I imagine this is some kind of expense, but how would you categorize it?

Our food production related product requires recipe research and food photography to create content for website and other marketing materials.

Is it a marketing expense, R&D expense, etc. ?

Hello Mark,

Great question. I would be inclined to classify this as a Research and Development (R&D) expense.

Regards!

Accounting for Free Food

When a restaurant gives a complaining customer a free meal; how does the bookkeeper account for this meal? Does it just "wash" through the Cost of Goods sold? If so, how does the owner know that his increase in cost is caused by free meals?

Accounting for Gratuities

Hi, what is the best way to account for tips when it comes to debit and credit cards? I assume that tips will be includes in my sales and then deposited into my bank account. What is the best way to then take tips out of my sales account to reconcile it? Tips payable or something like that? The thing is, though, that the wait staff collect their tips after their shift.

Thanks very much!

Accounting For Partnerships (Dissolution- Changes In Ownership)

by Maureen Labrador
(Philippines)

Admission by investment of Assets

Partners Gonzaga and Magada have capital account balances of P30,000 and P20,000, respectively, and they share profits and losses in a 3:1 ratio.

Required: Prepare the journal entries to record the admission of Ortiz under each of the following conditions:

1. Ortiz invested P30,000 for a one-fourth interest in net assets; the total partnership capital after Ortiz's admission will be P80,000.

2. Ortiz invested P30,000, of which P10,000 is a bonus to Gonzaga and Magada. In conjuction with the admission of Ortiz, the carrying amount of the inventories is increased by P16,000. Ortiz's capital account is credited for P20,000.


Thanks

Accounting for Value Added

by Jason
(Fawn Grove, PA, USA)

We are a podcast and a nonprofit corporation in PA. We create audio CDs of the podcast and donate them to the local public libraries. We do not like to fool with creating audio CDs of archived episodes so we price them at $12.00 due to time, material and postage. I paid $14.00 for blank 100 CDs. Now, 40 episodes is technically a $480 donation to the libraries. I believe I can debit the Expenses account for the $480 but since there was value added from $14 to $480 how do I show the credit for this transaction?

Financial Accounting

by David
(jhb)

Why do total assets equal total equity and liabilities on both balance sheets?

Mastering Correction of Accounting Errors

(CA)

1. Which of the following errors would not be revealed by the trial balance?

a. a sale debited to accounts receivable for $500 and credited to sale for $50
b. a rent check debited to rent expense for $975 and credited to cash for $795
c. collection of receivable debited to cash for $300 and credited to accounts payable for $300
d. payment of an account debited to accounts payable for $1000 and debited to cash for $1000

Non-Profit Accounting Within a Commercial Company

by Jonas
(Kampala, Uganda)

Hello,

I need to do the accountancy for a company but it has been more than 10 years since I had some courses and I'm a bit stuck.

Setting: Basicly there are 3 companies. In Uganda there is a commercial company, in Congo there is a commercial company and a non-profit organisation. They are all owned by the same person but apart from that, no other link in between. The congolese company is actualy just a plantation that has one client, the ugandan company. In Uganda they have the English accountancy system/rules and in Congo the belgian/french.

I'm stuck with the following:
- How do I book a grant that a commercial comapny receives? (as we are fair-trade, there are some organisations that want to support us for example)
- How do I book a repayable Grant. That is basicly a loan without interest but there are some costs for administration related to them.
- Sometimes it happens that we receive a grant on our ugandan bank accounts, but the grant is ment for the conoglese company. How do I book it? And what happens when we transfer the money in cash to congo? What happens when we buy assets from them in Uganda that we later hand over to our congolese company?
- We are allowed to allocate a part of our employees salaries to a project as an own-contribution in-kind. How do you book such a thing? The own contribution is a condition of the grant. They give us money but we have to prove that we ourselves invest a certain percentage of the grant as well.
- Can you book accumulated depreciation in the french accountancy system? That way, through the life of the asse, at all time you can trace the original purchase price and all the depreciations so far.
- As we live in Africa, often we need to give an advance on services that still need to be delivered. Unfortunately, it also happens that those persons dissapear with the money and never show up or deliver their services anymore. How do I account for that?
- When is packaging of a material an asset and when is it an expense and part of the equity?


If you know any of the answers, any help is greatly appreciated!!


Best regards
Jonas

Propreitory Concern Accounting

A propreitor maintains his savings A/c in the co's books of Accounts.Now he recd some amount after selling his personal Property which he deposited in his saving A/c.
What Entry should I Pass ?

Is it : Bank A/c Dr
To propreitor capital A/c

or

Bank A/c dr.
To Sale of property A/c.

Kindly note he invest the recd amt in another co.