6 Calculating Discount and Posting of Transactioon

Jasmine buys goods from reshma on 60 day credit terms.alternatively a 10 percent cash discount is available on any payment received within 10 days during feb.the following transations took place
Feb 2 jasmine buys $800 of goods
Feb 1w jasmine pays reshma a cheque for $360
What is the balane of jasmine account in reshma receivables ledger at 28 feb

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Beginning bookkeeper trying to "fix" a problem!

Cash proceeds from a volunteer thrift store (the total amount of cash is recorded at the store) was given to the bookkeeper. The director over the volunteer thrift store project wanted to give the thrift store volunteer a gift for Christmas. So he asks the bookkeeper for $50.00 cash to be given in a card to the volunteer at a luncheon.

The bookkeeper had just received the cash proceeds from the store when the director asks for the $50.00, so she gives him $50.00 from the recorded cash proceeds; the bookkeeper knows that the cash is recorded before she receives it so she writes a check from the account that the proceeds are deposited into to make the cash proceeds total amount match the recorded amount. She posted the deposit in quick books and expensed the check as a "gift". The deposit and check has cleared the bank and the independent audit is $50.00 off.

What bookkeeping entry can be made to correct this.
(No wrong doing was intended, the bookkeeper just did not know what to do.)


Can you help?


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Bookkeeping Posting

Is posting an expense, a debit entry to the expense account?

Hi,

Thanks for the question. Yes, when posting an expense you are making a debit entry to the expense account as it carries a normal debit balance.

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Calculating Discount And Posting Of Transactioon

Jasmine buys goods from reshma on 60 day credit terms.alternatively a 10 percent cash discount is available on any payment received within 10 days during feb.the following transations took place
Feb 2 jasmine buys $800 of goods
Feb 11 jasmine pays reshma a cheque for $360
What is the balane of jasmine account in reshma receivables ledger at 28 feb

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Deleting posted payments

by Carol
(Pittsburgh PA)

After 38 years of working, I have always believed that a computer system should not allow staff to delete payments, charges and adjustments once they have been posted. Unfortunately, not everyone where I currently work believes in that statement. Is there some place I can get written proof that this is not a good practice? Thanks

Hello Carol,

Thank you for your question.

Deleting posted payments is a huge no-no and a red flag if ever audited!

I would check out the IRS website at www.irs.gov.

I will be on the lookout and post back if I happen to find anything for you.

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How Do I Post a Loss on Rental Properties?

This has been a bad year and I have one property that the Tenants moved out owing us a lot of money. Do I post this as a Journal entry? Is it an expense, liability, what?

Loss of rent is not posted as a journal entry on the books. The loss will show up on your tax return, (On Schedule E), when the amount of rent received is less than the amount you've paid in expenses.

Thanks for asking. This is a great question as many people are running into the same issue this year. I hope next year is much better for you!

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How To Post Insurance Payout

One of our business vehicles was totaled. The insurance company has just paid it off. What is the best way to post it in my accounting software? It currently is still listed in the Long Term Liabilities section.

accounting@coltsecurity.com

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Post to Which Account

If an employee of a restaurant leaves food out to spoil. The employer takes the money for the loss out of the employees next paycheck.
The employee's check will show a deduction for $25. Does that goes against sales or purchases. Which account will be debited and which credited?


Hello,

Thank you for your question.

I believe that the deduction from the employee's paycheck would be credited to purchases (COGS), since it is a purchased expense that is being reimbursed.

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Posting

When you start a sole proprietership business and paid expenses out of your pocket before receiving income where do you post that in the books?

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Posting 1031 Basis from Sch E to LLC

by mes
(Jefferson OR)

Do you post the carry over basis for 1031 property as a debit to fixed assets and a credit to equity? If not --- how do you post it?

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Posting a Loan Correctly

I loaned another company $25,000.00 and later that week they paid it back in full. How should I post this in Quick Books?

Hello,

Thank you for your question.

The loan would be posted to an other asset account in QuickBooks as follows:

CREDIT CASH $25,000
DEBIT LOAN RECEIVABLE $25,000

While the repayment of the loan would be posted as:

DEBIT CASH $25,000
CREDIT LOAN RECEIVABLE $25,000

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Posting Adjustments To The Chart of Accounts

by David
(England)

Mr Davis asks me to make the following changes to the chart of accounts:

Depreciation is to be charged for Feburary in the following amounts:

Plant & Machinery £250
Office Equipment £200
Motor Vehicles £150

I am using Sage 50, how do I carry out this posting?

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Posting an Insurance Premium Refund

by Teresa
(Glen Allen, VA)

What two accounts do I post an insurance premium refund to?

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Posting Credit Card Purchases

by Cougs
(Toronto, ON, Canada)

What is the cleanest way to enter a purchase of materials by credit card? Where on the balance sheet should the credit card be - with the bank accounts as an Asset or with Liabilities like a loan payable?

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Posting Insurance

by Gloria
(Calgary, AB)

How do I post Auto Insurance that is paid in installments? Do I post the total renewal amount then post the monthly deductions against it?

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Posting Sales And Purchase Invoices After Month Close

A project closed on 5/19/2010 and we like to invoice on the project close date. Info was not sent to accounting for the invoice to be created until 6/4 though. CFO said to back date invoices so we can maintain our 30 day payment terms and get paid 30 days after the project closes. He probably didn't forsee this problem.

Shouldn't I date the invoice from 6/1 at the earliest though?

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Posting Start-up Expenses For Sole Proprietor

I have just recently started a bookkeeping business from my home. I have incurred appx. $700.00 in start-up expenses paid by my personal checks, cash or credit cards. The business has not generated any income as of yet should I post these expenses to an equity account?

Thanks for your help.

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Posting to a GL Account

A credit is posted to your checking account by your bank because you transferred funds from another account to cover an overdraft. When posting this credit in your checking account register, what GL account should you post to? It's not "bank service charges" or "NSF" charges....

Hi,

Thanks for your inquiry. If the other account was a personal account, the credit would be posted as an Owner's contribution.

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Proper entries for business owner's mortgage payment

by Yolanda
(Philly)

An owner bought a building and uses it to be his daycare center. The building is under his name and his mortgage check payment is made out of his daycare. How do I post this payment correctly? Treat it as a rent expense to the daycare and to owner as income or... one more thing his daycare is non-profit under registration.

Hello Yolanda,

Thank you for your inquiry.

First, the owner would need to set-up the building and mortgage accounts. If the building and loan value were 100,000, the transaction would be as follows:

DEBIT 100,000 Building (Asset)
CREDIT 100,000 Mortgage Loan Payable (Liability)

Then each mortgage payment would be recorded as follows:

CREDIT Cash Account
DEBIT Mortgage Loan Payable (principal portion)
DEBIT Loan Interest Expense (interest portion)

The interest portion of the payment is the only amount that is deductible, while the building itself would be depreciated.

Great question!

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