Questions and Answers
Ask a Free Bookkeeping Question

Are you having difficulties with Bookkeeping? Here on the Questions and Answers page, you can ask a question about any area of bookkeeping and accounting. If you are finding it hard to figure out where to categorize your expenses and are wasting valuable time worrying about what to do, you don't need to worry any more.


Questions and Answers

From the general ledger, accounts receivable and accounts payable accounts all the way through to the generation of financial statements. No question is too big or small. You can ask it here. It's free and easy to do.

In response to the amount of questions I have been receiving via email, I decided to start this page to answer any questions you have about problems with your bookkeeping. It is always beneficial to have the help of other professional bookkeepers to make sure you are accurately taking care of your books. So if you find yourself worried and wondering if you are doing something correctly or not, have no fear! You have come to the right place for help.

Submit a bookkeeping question ~ See other visitors questions and answers

Rather than answering individual questions via email, this will give everyone a chance to read about problems that others are having too, and find out how to solve them. It will become a FAQ about Bookkeeping that will hopefully help to save a lot of headaches by sharing helpful information that can help you get it right the first time.

The advice I give is only from my experiences and way of doing things. If you have valuable experience to share, please help me by also contributing to the answers. This is a two way web page...you and me. You can ask a question, answer a question or do both. You will become my co-expert on these questions by rating and submitting comments.

Of course you can still contact me if you have a question that you feel would not benefit others or needs a personal response.

Questions and Answers - Income Tax Questions

There will also be a separate page to ask income tax questions. As well as asking a question about your income tax problems, you can also read previous income tax Q&A's on that page.

All other questions about any aspect of bookkeeping and accounting can be asked just below, on this page.

Important: If you do not include enough information in your question, I will not be able to answer it. Please be as detailed as possible.

Having Difficulties With Bookkeeping? Let Us Help

Ask questions about the problems you are having with bookkeeping. You can even answer questions that have already been asked. It's free, it's easy and it's fun.

This is for everyone to participate in. Let's all help and be helped. Don't forget to check back soon to view the answers. I'll do my best to give my personal reply within 24 hours.

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What Other Visitors Have Said

Click below to see contributions from other visitors to this page...

Accrual Basis Questions 
My organization is putting on a large paid event in six months. We just started taking $100 reservations by credit card - we get $97 and the credit card …

Petty Cash Questions 
Here is the question: A business owner used company petty cash to bought flowers for his wife, how to enter in Cash Payment journal? Did it affact Drawings …

Work Questions 
I have not worked in almost 30 years and am preparing to return to work as a bookkeeper, the old fashioned way. I have completed the accounting principles …

Customer Questions 
I accept credit cards at my business and want to know if I need to keep the receipt they sign? If so, why? And how long?

Check Questions 
Hello, I put a stop payment on a check paid to my vendor and reissued a new one in Dec 2009. This new check was cashed in Dec 2009. However, in Oct …

Gas Questions 
The gas at my gas station is not inventory. It is owned by Sunoco. As an example - say I sell $5000 of gas in a day - of this amount $50 is my take …

Suspense Account Questions 
What is the suspense account? What should be put into a suspense account from a journal account and how is it worked out? My bookkeeping book is not very …

Managing Vendor discounts 
Hi I am wondering what is the correct way to manage discounts I get from Vendors. They are flat rate discounts which vary from product to product. …

Vehicle Questions 
How do you record in Quickbooks the following scenario: Sold company vehicle for 17,500: All accummulated depreciation is used. Should …

Company Start-Up Questions 
1. Does this also apply for a single member LLC? 2. Let’s say the official start day of my business is March 2009 but I bought expense (start up cost) …

Payroll Questions 
How do you adjust a paycheck amount for reconciling purposes only? In my books the paycheck issued has an amount but my client gave the employee a different …

What Are Prototypes And Product Creation 
What are prototypes, design and development of a product categorized as?

LLC Questions 
the owner of the LLC Corp draws his salary from the "Member Draw" GL. The type of gl shows as a "Equity- gets closed" i just want to confirm this is …

Equity Questions 
At the beginning of the year, Precise Solution liabilities equal $59,000. During the year, assets increased by $60,000, and at year-end assets equal $190,000. …

Cost of Goods Sold Questions 
I have a restaurant equipment company. When I buy equipment to sell do I put it under cost of goods sold?

Tax Questions 
Are the taxes on airline travel tickets deductible by a traveler who itemizes on Form 1040?

Asset Questions 
Am trying to learn the basics of bookkeeping and I can't seem to grasp the concept of assets as a debit. I am using Bookkeeping for Dummies and Bookkeeping …

Merchant Credit Card Fees Not rated yet
When I receive a credit card payment of, lets say, $100. But the merchant credit card company only deposits into my account $97.50 due to deducting $2.50 …

Investing In Construction Company In Panama. Not rated yet
Good day, I would like to recieve some information regarding my question, please. My incorporation just finished the prosess of refinancing, and because …

Year End Rollover Not rated yet
What happens when a end of year rollover is done in an accounting package?

S Corp Questions Not rated yet
We are in the process of opening another restaurant dba under the same S corp. We will keep a seperate set of books. How do I account for all the dollars …

Cash Questions Not rated yet
Cash received as loan goes to which side in Trial Balance?

Insurance Questions Not rated yet
How to post an insurance claim check which was received in payment of property loss without it showing up as income?

Depreciation Questions Not rated yet
When the Australian dollar depreciates against the US dollar, what effect does this have on Australian exorters who export to the US? How does it effect …

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Equipment Questions Not rated yet
We have leased equipment. The lessee has paid us $50000 against the total amount of the equipment, which is $550,000. They will lease the equipment from …

Owner Questions Not rated yet
I am a owner that withdraw cashier checks from my bank and deposit the unused cashier checks back in to my bank account. How do I book it in quickbooks …

Trusts Not rated yet
We have set up a trust for a retarded child. We are not using the money out of it for her yet - it is just in the bank collecting interest. I am told …

Loan Questions Not rated yet
Our business began with the loan: Dr Bank Cr Loan Account For making payments I have just: Dr Loan account Cr Bank Now I have received monthly …

Company Questions Not rated yet
Can I buy merchandise from Marshalls with a company card and export this merchandise in Europe even Marshall doesn't issue an invoice on my company name, …

Mortgage Questions Not rated yet
I got a 2nd mtg for 85000.00 @8.25 intial annual int rate.compounding monthly starting feb 1,2008. the apr is 11.496%, advanced to us on jan 18,2008. term …

Gift Certificate Questions Not rated yet
Can someone help me with the appropriate entries for a gift of stock where the gift is valued to the donor on the day of the gift but the stock is sold …

Chapter Journal Questions Not rated yet
PREPARE PETTY CASH BOOK OF MAHESH FOR THE FIRST WEEK OF SEPTEMBER 2009 SEPTEMBER 1 OPENING PETTY CASH BALANCE RS.56 RECEIVED FROM MAIN CASHIER RS.2500 …

Trade Questions Not rated yet
How are trading goods received as gift recorded in journal?

Register Is Off Not rated yet
The register in my account is off. It shows I have a negative balance, however I can reconcile every month. How do I fix the register to show the correct …

From Chapter Bill of Exchange Not rated yet
Manish accepted a bill of Rs.40,000 drawn by Krishna at 3 months. Krishna got the bill discounted with his bank for Rs.39,000. Before the due date, Manish …

Financial Report Not rated yet
Hi, The opening balance for the period + the income from the P & L minus the expenses on the P & L does not equal the ending balance in the GL. What …

Unbilled Suppliers Orders Not rated yet
I receieved invoices dating back July 2008 from one of my suppliers for unbilled orders I placed with him. The total of all the invoices come to approximately …

VAT Questions Not rated yet
In the double entry if you pay by cheque and you have vat added where do you put the debit and credit with the vat? thanks

Quick School Question Not rated yet
On August 4, Sanders provides services to Frederickson for $5,000, terms 3/10, n/30. Frederickson pays for the services on August 12. What amount would …

Sales Questions Not rated yet
Hello. I have a small business, and most of my sales are wholesale. I use Accountedge (MAC). No problems. My question is this: For online sales, …

Ledger Not rated yet
If a firm purchases office equipment which account should record the purcase the purchase account? Or do you make a office equipment account?

Invoice Questions Not rated yet
I am a very small business - a one-person secretarial service, and I've never had the facility -- nor a pressing need -- to accept credit cards (though …

Revenue Account Questions Not rated yet
Can a deferred revenue be credited with a debit to Accounts Receivable? My business has deposits received for future services rendered. We like to set …

Deposit Questions Not rated yet
Our company rents out some store rooms to our customers. The customers are required to place some deposits upon commencement of the lease and are expected …

Donation Questions Not rated yet
We are 501c3 organization that collects non monetary donations from businesses and individuals for items to be raffled off at our fund raising events. …

Sole Proprietor Questions Not rated yet
Do you have any 10 questions based on sole proprietorsip business?

Miscellaneous Questions Not rated yet
i have B.E DEGREE not B.TECH so will i be able to do M.TECH or i would have to do M.E.?

Transaction Questions Not rated yet
One of the providers in a practice ask s for a report of yesterday's transactions. How would this report be created?

General Ledger Questions Not rated yet
I have been ask to provide a general journal recording a month's worth of transactions. One of the tranactions states there is a $300 cash shortage. …

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Purchase Questions Not rated yet
I have recently purchased multiple SFR as investment properties. I am currently doing numerous renovations on the home, such as new texture, replacing …

Closing Questions Not rated yet
After unadjusted trial balance is verified, what is next step in month-end close process?

Income Tax Questions Not rated yet
How to account the income tax paid by the limited Company

Stock Questions Not rated yet
My supplier has given us free trading stock as an incentive to sell his products. How do I capture this? I know that I debit stock but what account should …

Partner Questions Not rated yet
My company just took on a new partner. The partner is investing money into the company. I need to post a large amount that has been put into our savings …

Freight Questions Not rated yet
I have an invoice for 6 different items, some are raw products, some are equipment. Total shipping was $8.50. What is the proper way to divide up shipping …

Bank Account Questions Not rated yet
I was just going through my bank reconcilations for 2010 and I noticed some business checks were deposited into personal account, both accounts are on …

Want to Claim for a House  Not rated yet
My husband is unemployed since one and half year we have one son n we live in my mother in low's house we have no property now she want us to be out from …

Percentage Questions Not rated yet
If you buy a new piece of eqiupment for $5,535, and you receive a cash flow of $1,000 per year for 8 years. What is the internal percentage of return? …

PREPARE FOR END OF FISCAL YEAR Not rated yet
We have a new Treasurer bookkeeper and I am a new president of a small 501c3 non-profit. This clause shown below is in our bylaws and It seems the past …

Money Questions Not rated yet
I WANT TO KNOW ABOUT WHERE I INFORM ABOUT ANY TAX EVASION BY SOME ILLEGAL PROPERTY DEALER

Budget Questions Not rated yet
How do I show the mortgage principal payment as part of the monthly expenses for budgeting when it is a liability account and does not show on the QuickBooks …

What Would Be Debit in the Case Given Below  Not rated yet
Let off the part of the premises receiving rent by checque $75

Bookkeeper Questions Not rated yet
If the owner of the buisness takes something from stock to use for persnol used what entries need to go through the books.

Clean Up Questions Not rated yet
A friend has asked me to enter some data for her, reconcile her books, and in general, get her on the right track. She is carrying unpaid checks on her …

Inventory Questions Not rated yet
If I took a loan to buy inventory would that go to fixed asset or short term liability?

Account Questions Not rated yet
When paying for office supplies purchased in June on account, which accounts are affected?

Refund Questions Not rated yet
How do I show a deposit for income tax refund in quickbooks? Hello, Thanks for your contribution. A deposit for income tax refund would normally …

Fee Questions Not rated yet
I am a graphic artist. I need to start charging a late fee for unpaid invoices over 30days. I use Quick Books, What do I put in the Annual Interest Rate …

Handling A SEP IRA Contribution? Not rated yet
SEP IRAs retirement plans similar to 401Ks except that the company makes 100% of the contributions. There are numerous requirements that are well documented …

Double Entry Questions Not rated yet
In double entry, why do we enter the wages paid by cheque into the credit section of the Bank Account and not the wages paid in cash.

Personal Questions Not rated yet
I have a young man that started a business with his personal bank account and then incorporated the business later. How do I merge these two accounts …

Posting Questions Not rated yet
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 …

Credit Card Questions Not rated yet
If something is charged in December of 2010 and the charge card is paid later with a check in January of 2011 Is it deducted on 2010's taxes or 2011's. …

Rent Questions Not rated yet
When returning a security deposit to my tenant for renting my property how do I apply it in the general ledeger?

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Property Management Escrows Not rated yet
A homeowner buying on land contract who is paying water directly was delinquent and water amount went to taxes. Can we take the amount paid by land …

Transfer Questions Not rated yet
Hi, Using Sage line 50. Have recived statement from our merchant service (PDQ). They have deducted their commision / charges from the money obtain from …

Unanswered Bookkeeping Questions Not rated yet
A. be expected to generate a future benefit B. provide an obligation for the company

HST Questions Not rated yet
I am still trying to figure out the HST with Charities and Simply Accounting. In my system I have in the past allocated 50% to GST refundable, how do …

Networks Not rated yet
I have question about networks that I am hoping that someone will be able to help me with. Specifically, what is a network? Also what are the components …

Quickbooks Questions Not rated yet
We have two seperate companies. One has been around for a few years the other has just been around since March of this year. Where do we make …

Wrong Form of the Social Security Not rated yet
There are 2 business and I have been doing my income tax by a bookkeeper. The other business went with another accountant and he said that he had found …

Classify Questions Not rated yet
Rohit brought a tape-recorder for rs.1500 and sold it for rs.1800. Calculate his profit or loss percent

Credit Questions Not rated yet
A loan cash rm500 is paid to us by cheque. Your entries would be: DEBIT Bank Account (Asset) CREDIT Loan Payable (Long Term Liability) …

More Bookkeeping Questions Not rated yet
What are: Return outwards Return inwards Carriage out Carriage inwards

Labor Questions Not rated yet
Our office moved, we paid for the build out, what account should I put the labor for the build out?

Over/Under Billing Not rated yet
How do you book over/under billing for WIP on Profit and Loss.

Expense Questions Not rated yet
I have a client who is sole proprietor . He uses his personal accounts and cc's for business, there is or no separation between personal and business. …

What Is The Proper Way To Itemize This Scenerio? Not rated yet
What is the proper way to itemize this scenerio? Company I am helping is a middle man for title company and County court houses. He receives money …

Business Questions Not rated yet
I recently purchased an existing company, purchasing shares. I paid 220k thousand, received 100 shares total split 50 for each myself and my husband. …

Rebate Questions Not rated yet
If our company sells a solar system and the customer invoice is $2500.00, Then there is a rebate for $500.00. The customer pays for $2000.00 and we recieve …

Life Insurance Questions Not rated yet
What account(s) needs to be debited when paying Owner's monthly Life Insurance premium? I know to credit bank account - but unsure of debit side. Medium …

Sage 50 Not rated yet
In sage 50, where do i find the suppliers payment wizzard, and which box on the suppliers window do i bring the payment wizzard up. also i would like …

Correction Questions Not rated yet
What are the correct accounts for remitting EI, CPP and Tax. Employees EI is $49.13, Employers EI portion is $68.78. Employees CPP is $62.78, same for …

suppliers wizzard Not rated yet
Hi. Could you please tell me where i can find the suppliers payment wizzard, on the suppliers list, thank you.

Service Questions Not rated yet
How do you book a two-year service contract that is being paid monthly? The issue really is how does it offset the labor used if and when service is required? …

Journal Questions Not rated yet
In the opening balance of general journal, the balance bank account of say $30,000, should that be in debit or credit in my accounting and why? Hello …

Help Answer Questions Not rated yet
SECTION B ANSWER THE QUESTION IN THIS SECTION (THIS SECTION CARRIES 15 MARKS) QUESTION: The following are the transactions of Wong Ah Meng …

Trial Balance Questions Not rated yet
If you borrow money from a bank and you make a payment on the account, does your A/P (bank loan) and cash account both decrease? Hi, Thanks for …

Lease Questions Not rated yet
I have started a small business and purchased a sign with a lease purchase agreement. I paid $1000.00 down leaving a balance due of $7400 (with monthly …

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Retainer Questions Not rated yet
How do I post a retainer paid to an attorney in Quickbooks? Hi Jackie, Thanks for your question. A retainer deposited is posted in Quickbooks …

Foreign Currencies Not rated yet
I have a new client who deals in US $ and does not need to exchange into CAD $ as he pays his expenses, salaries etc all in US $ . I am writng from …

Entering Questions Not rated yet
Our office uses "The Therapist" software by Beaver Creek for our accounting. When we receive a payment from the collection agency, it is entered into …

Website Business Questions Not rated yet
I am going to start a new website with Site Build It soon. I will like to keep records of all payments, expenses as well as any revenue or income earned …

Underpayment Penalty Not rated yet
A taxpayer may owe an underpayment penalty for what? Hi, Thanks for your question, A taxpayer may owe an underpayment penalty when he/she is …

Receipt Questions Not rated yet
I am doing the bookkeeping for an information technology business and i don't even know the best way to document purchases made on the internet. Should …

Balancing Questions Not rated yet
I do not know what part of the balance sheet reads to what part of the P&L. Also, What should I look for when balancing? I know about bank balances, …

Prepaid Questions Not rated yet
I am just starting out doing some bookeeping for a friend. She paid her 1st and last months rent plus a security deposit. How will I post the last months …

Salary Questions Not rated yet
Why does salary have different meanings under different headings? For example: When we are calculating gratuity we include basic salary, dearness …

GST Questions Not rated yet
Terms of 1%/10. Is the 1% to be taken on the whole invoice amount including G.S.T. or does the discount only apply to the product and customer has to …

Payment Questions Not rated yet
Which T-accounts are affected when a client pays rents in advance? Which accounting statement is affected is affected by this transaction- P$L or Balance …

Bad Debt Questions Not rated yet
Where do you record bad debt? Hello, Thank you for your question. Bad debt is recorded on the Profit and Loss statement as an expense under …

Employee Questions Not rated yet
How do I account and track employee compensation perks? For example tickets to a broadway show or sporting event? Hello Hazel, Thenk you for …

Capital Account Questions Not rated yet
I have invested in a building which I am going to rent out. Is it Dr Building Cr Capital? The net Income I receive from renting the building I want …

Funding Questions Not rated yet
Why are some recognized Indian Tribes charged with the funding of the Fed-ED extension - I don't see the correlation. Also, who are the government entities …

Write Off Questions Not rated yet
We are a LDT company that is run out of our home and I'm not sure what we can write off on the business books. How do you know what kind of expenses can …

Business Startup Questions Not rated yet
What are the main reasons a business needs to keep books? One of the main reasons a busines needs to keep books is so that it has an accurate record …

Corporate Questions Not rated yet
I have a client who has a corporation. The business is rental properties. The officers of the corporation do not take a wage but they do receive rental …

Accounting Questions Not rated yet
Set up the following 10 t-accounts on a sheet of blank paper: Cash (or bank); Office Equipment; Furniture & Fixtures; Delivery Equipment; Land; Building; …

Liability Account Questions Not rated yet
How do you record credit card payments? The payments you make to your credit card company will decrease your cash account and decrease your credit …

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