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Oct 12, 2010
Gas station Accounting
by: Anonymous

In the 1st Case. (Accrural Method)

All you have to do is deposit the money in your bank and record Bank $5000(DR), Revenue $5000(CR).

When preparing your P/L, the account will look like below"

Dr. COGS $4950
Dr. Acct Recv. $50
CR Revenue $5000

2nd case

Dr COGS $4850
Dr. Discount given $100
Dr. Acct Recv. $50
Cr.Revenue $5000

The above suggestion applies to small business not subject to IFRS rules.

Balance Sheeet.

Asumming you deposit the money in your bank in case 1 above:

Dr Bank $5000
CR Inventory 5000

When you write a cheque of $4950 to pay Sunuco,after deducting your $50, bank decerease by $4950(CR), Current liability decrease by $5000(DR), Acct recev decerase by 50(CR).

U can address the discount issue the same way. depending on how your account is set up. It could be a reduction in revenue or just as expence. either way just cut $4850 for Sunuco'

Adewale Adeyemi, Toronto.
Waleyemi2010@gmail.com

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