Basic Bookkeeping Question

by Linus Longwa
(Tanzania)

More

What are:

Return outwards
Return inwards
Carriage out
Carriage inwards

Book Keeping Capital

by Med
(London)

Book Keeping Capital

If a person has £4000 in cash, stock valued at £2400, business premises worth £16000, debts owing to him £1000, and a shop fitting worth £6000(of which £4000 has not yet been paid), what is the capital?

Book Keeping

All increases in assets are recorded in the appropriate asset account as?

Bookkeeping Normal Debit Balance

by Tasha Howard
(Ark)

Which of the following accounts has a normal debit balance?

a.equipment
b.bank loan
c.owner's equity
d.accounts payable

Hi Tasha,

Thanks for your contribution. I believe the answer is a. equipment, as equipment is an asset account.

Bookkeeping Test Q&A

1)When interst is received from customers, how is the transaction recorded?
2)What is Equity?
3)What is owner's Equity?
4)How is Petty Cas1h fund balanced?
5)What does current Liablilities include? a)a/p; b)wages a/p; c)mortgage payable or d) Short term notes?
6)What is included in Long Term Liability? a) Bond Payable b) a/p; c)a/r; or Bond Receivable?
7)At end of month, how are totals posted in Petty Cash Journal?
8)What is Net Income formula?
9)What is summarized on an Income Statement?
10)Which is a Liability? a) Prepaid Ins. b) Interest date to; c)a/r or d)Land and building?
11)What is Double Entry Accounting System?
12)All are credits EXCEPT: a) Decrease in Inventory b)Increase Owner's Capital c)An increase in Machinery D) Goes into debt?
13)Which is a Debit? a)Earning Revenue from sales b)An increase in Cash c)Spending of cash d)Office supply expense paid?
14)The company pays 2000 in wages, how would Expense entered in Journal?
15)This is true of Ledger EXCEPT: a)Tran. from Journal are transferred to Ledger b)Trans. from Ledger are transfer to Journal c)Each type of trans. is maintained separately?
15)What is Chart of Account?
16)What must happen for Trial Balance to balance at end of accounting period?
17)What is Notes Payable?
18)How do you Determine Depreciation- what is the formula?
19)How is current Depreciation value of Asset calculated?
20)What Journal entries is required if prepaid item is consumed over a period of time?
21)Closing Books- what is required from bookkeeper to bring expense account to zero?

Bookkeeping Accrued Interest

Accrued Interest

A) Johnny's corporation borrowed money and issued a note (in the amount of 10,000) to cover cash shortages during the slow season.

B) One month later, Johnny's has to account for the interest (in the amount of 900) on the note that has accrued.


A) 10,000 DEBIT Cash Account
10,000 CREDIT Notes Payable

B) 900 DEBIT Accrued Interest
900 CREDIT Notes Payable

Bookkeeping Payment Expense

In the context of bookkeeping, how would one define or characterize a payment?

Bookkeeping Cash Loan

A loan rm500 paid to us by cash. which one is credit and debit?

Entry would be as follows:

DEBIT Bank Account (Asset)
CREDIT Loan Payable (Liability)

Bookkeeping Income Report

by Jennifer
(Australia)

Bookkeeping

How is a revenue/expenses report used to inform others about the budget?

Bookkeeping Step By Step

Good Day

please help me I did 2 bookkeeping courses.

1. Bookkeeping to trial balance
2. Payroll to statutory return

We did everything manual I'm looking for a new job but am afraid because I dont know where to start as we did everything manual can't you maybe tell it to me step by step.

Bookkeeping Gross Wages

1)a salary worker earned 33,000.00 is paid biweekly, what is gross wages each paid period?

Bookkeeping Printer Personal Use

by Olga
(UK)

Oliver runs his own computer company.

He has taken a printer from stock and has given it to his daughter to use in order for her to print out her homework.

What entries do I need to put through the books?

Bookkeeping Ledger Description

by Michelle
(Pennsylvnania)

Ledger

Could you clarify which definition accurately portrays the concept of a ledger in bookkeeping?

Bookkeeping Career Advice

What advice would you give someone who is thinking about entering this field?

Bookkeeping Cash Account

by Rabia
(Hounslow London)

Drew a 1200 cheque and cash put in cash account, where do the ledger entries go?

Hi Rabia,

Thank you for your contribution. If you wrote a check, the ledger entry would be:

CREDIT Cash Account
DEBIT Expense, Asset, Loan or Equity account depending upon what the check was written for.

The cash put into the cash account would be posted as:

DEBIT Cash Account
CREDIT Income or Equity Account (depending on where money came from)

Bookkeeping Debits and Credits

In the bookkeeping process, for every transaction the sum of the debit entries must be equal the sum of the credit entries (in monetary value)

Is this true or false?

Bookkeeping For an Artist

by Wendy McLennan
(Hamilton, Ontario)

Hello, I have been Bookkeeping for a few years now as an Owner/Operator from my home office. One of my clients gave my card to a well known artist in the area who plans to contact me for her Bookkeeping/Accounting needs. I am kind of nervous since I have not had to interview or seek out clients before.

They come to me from word of mouth ... but this potential client is famous and I guess I don't know where to start with the right questions to ask or the right info to tell her. I am the worst person to try to sell my own services .... I am terrible at selling my services to others ... I come across as "unknowledgeable" and unprofessional.

HELP. I need to know how to conduct myself at a meeting with this Artist ... and how to discuss Accounting in a professioanla manner. Do you have any advice that I can put to use right away.

Thank You
Wendy McLennan

Bookkeeping for Issuing Shares to Employees

by Andy Mah
(Vista, CA , USA)

What is the double entry for for issuing shares to employees?

Bookeeping Interview

by Kara
(Cazenovia, NY USA)

Q: Did you have to move to find you job? And about how long did it take you to find it after schooling?

Q: What types of benefits do you receive?

Q: What's the least amount of education needed and what is the most possible for a bookkeeper?

Q: What are you required to wear as a dress attire? Are you able to participate in casual Friday?

Q: Lastly, how big is your company on ethics and what are some examples?

Bookkeeping Nightmare

(Canada)

I have a young man who started a construction business in November 2008, since that time he has not kept any books and has been paying for materials from his own bank account and credit card.

Any customer invoices that were paid to him were also deposited into his personal account and used for materials for jobs, office expenses etc. as well as personal use.

Any suggestions on how best to sort this out would be appreciated.

Hello,

Thank you for your question.

This actually happens more often than you would think when someone is first starting out with a new business.

What I suggest you do is to go through his bank statements from the time he started his business and start categorizing his personal vs. his business income and expenses.

You can do this by setting up a Microsoft Excel Spreadsheet with the different categories in each cell across the top. Then manually enter each business transaction under the correct column heading and total each column at the bottom.

Or, you can enter the bank account income and expense transactions in QuickBooks, again coding each transaction to the different account categories.

I highly recommend using QuickBooks Accounting Software as you can also perform monthly account reconciliations and reports much easier than with MS Excel. But either way will work just fine.

Best Wishes!

Bookkeeping Out Of Your Home in TN

by Judy
(TN)

I was told I should stop doing bookkeeping out of my home because I was breaking the laws of accountancy and can be turned in. This is the first I have ever been told this. A CPA told me this last night. What's up?

Bookkeeping Quiz

The balance sheet reports the condition of the business for future period, for past period, or on a specific data?

Hello,

Thank you for your question.

The balance sheet reports the condition of the business for a past period up to a specific date.

Bookkeeping Question - Advanced Payment

A law office has recieved a fee payment in advance to pay for filing fees. How do you set up this account?

Should this be set up as a liability account?

Hello,

Thank you for your question.

Advanced payments, or pre-payments, should be set-up as a liability account. For example, if you received $100 advanced filing fee, it would be recorded as follows:

DEBIT $100.00 Cash Account (Asset)
CREDIT $100.00 Advance Account (Liability)

Then you would later apply the advance as follows:

DEBIT $100.00 Advance Account (Liability)
CREDIT $100.00 Filing Fees Account (Income)

Bookkeeping software?

by Will
(California)

I have little knowledge of bookkeeping. At what point should I consider hiring a bookkeeper instead of using computer software?

I would highly recommend using computer software to do your bookkeeping regardless of whether you hire a bookkeeper or use the software yourself. QuickBooks Pro 2009 is a good version to get started with and offers some great built in tutorials.

Once you upload the software, play around with the tutorials for awhile to familarize yourself with all of the different day to day bookkeeping tasks involved with your type of business. After doing this, you should have a better idea of whether or not you will want to do the bookkeeping yourself.

Thank you for contributing! If you need any help as you go, please feel free to come back here anytime to ask another question.

Bookkeeping Transactions

In first time entering transactions for a business do I go by receipts or bank statements?

Help Get Started in Bookkeeping

by Sandy Mania

Coaching

Dear Madam,
Please, teach me the book keeping and accountancy by this way and also send me email about that.
So I'm interested about that I need your help, this time I'm doing a job to the CHARTERED ACCOUNTANT so I need your help mam.

You teach me all things like taxes, bookkeeping, VAT, i daily read u r email....... and please tell me how I look forward in the future how I go forward in the future in that basis.......... so please, help me.................

Hello,
Thank you for your email. I am very glad to hear that my website has been helpful to you. Please refer to the following link for more information on how to start your own bookkeeping business. :)

Home Based Bookkeeping Business.

Best Regards!