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.

You have the option to upload a photo if you want to show the problem. Sometimes it helps to see what you are talking about, but it's not absolutely necessary.

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What Other Visitors Have Said

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Food Bookkeeping Categorization 
If we buy chicken, where do we categorize it for bookkeeping purposes? Do we classify it under Groceries?

Credit Card Bookkeeping Questions 
I use QuickBooks. My boss paid a vendor invoice with a personal credit card which is also paid from the same bank account as the vendors. How do I post …

Gift Certificate Bookkeeping Questions 
Do you count the sale of gift cards when you sell the card or when the card is redeemed for merchandise?

Year End Bookkeeping Questions 
What happens when a end of year rollover is done in an accounting package?

Cash Bookkeeping Questions 
Cash received as loan goes to which side in the Trial Balance?

Accrual Basis Bookkeeping 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 Bookkeeping 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? Does it affect …

Work Bookkeeping 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 …

Inventory Bookkeeping Questions 
If I took a loan to buy inventory would that go to fixed asset or short term liability?

Refund Bookkeeping Questions 
How do I show a deposit for income tax refund in QuickBooks?

Personal Bookkeeping Questions 
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 …

Customer Bookkeeping 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?

Gas Bookkeeping Questions 
When recording gas receipts, what type of expense are they - vehicle, travel, un-categorized?

Credit Bookkeeping Questions 
A loan cash rm500 is paid to us by cheque.

Bookkeeping Journal Entry Questions 
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?

Trial Balance Bookkeeping Questions 
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?

Retainer Bookkeeping Questions 
How do I post a retainer paid to an attorney in QuickBooks?

Bookkeeping Entering Questions 
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 Bookkeeping Questions 
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 …

Receipt Bookkeeping Questions 
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 Bookkeeping Questions 
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 Bookkeeping Questions 
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 …

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

Salary Bookkeeping Questions 
Why does salary have different meanings under different headings? For example: When we are calculating gratuity we include basic salary, dearness allowance, …

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Payment Bookkeeping Questions 
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 Bookkeeping Questions 
Where do you record bad debt?

Employee Bookkeeping Questions 
How do I account for and track employee compensation perks? For example where would I categorize tickets to a Broadway show or sporting event?

Capital Account Bookkeeping Questions 
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 …

Suspense Account Bookkeeping Questions 
I am using two MYOB files - one in AUD and one set up as a USD file. WHen transferring funds between the two files, should I open a clearing account …

Company Start-Up Bookkeeping 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) …

Write Off Bookkeeping Questions 
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 Bookkeeping Questions 
What are the main reasons a business needs to keep books?

Corporate Bookkeeping Questions 
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 …

Accounting or Bookkeeping Questions 
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 Bookkeeping Questions 
How do you record credit card payments?

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

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

LLC Bookkeeping 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 …

Equity Bookkeeping 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 …

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

Asset Bookkeeping 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 …

Partner Bookkeeping Questions Not rated yet
Good day, I would like to recieve some information regarding my question, please. My incorporation just finished the process of refinancing, and because …

S Corp Bookkeeping 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 …

Insurance Bookkeeping 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 Bookkeeping 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 …

Equipment Bookkeeping 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 …

Loan Bookkeeping 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 Bookkeeping 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 Bookkeeping Questions Not rated yet
I got a 2nd mtg for $85,000.00 @ 8.25% initial annual int rate. Compounding monthly starting Feb 1,2008. The APR is 11.496% advanced to us on Jan 18,2008. …

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Chapter Journal Bookkeeping 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 …

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

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

Sales Bookkeeping 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, …

Invoice Bookkeeping 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 Bookkeeping 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 …

Deposit Bookkeeping 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 Bookkeeping 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 Bookkeeping Questions Not rated yet
Do you have any 10 questions based on a sole proprietorship business?

Miscellaneous Bookkeeping 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 Bookkeeping 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?

Bookkeeping 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 transactions states there is a $300 cash shortage. …

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

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

Stock Bookkeeping 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 …

Freight Bookkeeping 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 …

Bank Account Bookkeeping Questions Not rated yet
I was just going through my bank reconciliations for 2010 and I noticed some business checks were deposited into my personal account. Both accounts …

Owner Bookkeeping Questions Not rated yet
The owner of a business put a car worth 15000 euro into the company. How do I treat this in the books?

Percentage Bookkeeping 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? …

Money Bookkeeping Questions Not rated yet
I want to know about where I can inform someone about any kind of tax evasion or blackmail money by an illegal property dealer?

Budget Bookkeeping 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 …

Bookkeeper Bookkeeping Questions Not rated yet
If the owner of the business takes something from stock to use for personal use, what entries need to go through the books?

Bookkeeping 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 …

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

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Fee Bookkeeping 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 …

Retirement Bookkeeping Questions Not rated yet
I have a questions about SEP IRAs retirement plans that are similar to 401Ks except that the company makes 100% of the contributions. There are numerous …

Double Entry Bookkeeping 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?

Bookkeeing 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 …

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

Check Bookkeeping Questions Not rated yet
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 2010, …

Transfer Bookkeeping 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 …

Unanswered Bookkeeping Questions Not rated yet
Anything classified as an asset must be which of the following? A. be expected to generate a future benefit B. provide an obligation for the company …

HST Bookkeeping 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 …

Quickbooks Bookkeeping 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 the cutoff …

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

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

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

Bookkeeping 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. …

Business Bookkeeping 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 Bookkeeping 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 …

Life Insurance Bookkeeping 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. …

Bookkeeping 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, …

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

Service Bookkeeping 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 …

Foreign Bookkeeping Questions 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 …

Lease Bookkeeping Questions Not rated yet
What are leased assets capilized at?

Help Answer Bookkeeping Questions Not rated yet
Hi, I was wanting to know how to record accrued income and expenses in myob. With my course that I have just completed on manual balance day adjustments …

GST Bookkeeping Questions Not rated yet
Should there be GST on Commission payments made to third party agents?

Funding Bookkeeping 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 …

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