Gifted Goods Trade Question

by sureshan
(kannur, kerala, India)

Gifted Goods Trade

Gifted Goods Trade

How are trading goods received as gift recorded in the bookkeeping general journal?

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Jan 19, 2024
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starstarstarstarstar 		Trading Goods Gifts
by: BB

Alright, imagine your friend gives you a cool toy—a trading card game set. You want to make sure you remember this awesome gift, right? So, in your special book where you keep track of important things (like your toys), you write down that your friend gave you the trading card game set.

In bookkeeping, it's a bit like that! When a business gets cool things as gifts, like items they can sell, they want to remember it too. So, in their special book (it's called a general journal, but let's think of it like their toy book), they write down that they got these gifts.

Just like you'd write down the name of the toy and who gave it to you, businesses write down the name of the trading goods and where they got them. This helps them keep track of all the neat things they have for their business.

So, in simple terms, recording trading goods in the bookkeeping journal is like making a cool list of all the special gifts a business gets. It helps them remember what they have and where it came from. Easy, right?

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Trade In Computer

How do you write in the special book (General Journal) at the end of the month when you buy a new computer, including sales tax, for $3,300 and trade in your old computer for $220, also including sales tax? You're using a bank loan for the new computer.

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Jan 19, 2024
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starstarstarstarstar 		Recording Computer Deals
by: BB

Imagine you're on a mission to upgrade your computer, and you're keeping a special book (like a tech diary) to remember it all. So, you're buying a new computer for $3,300, including some extra money for sales tax. That's the total cost with tax!

But wait, you're also saying goodbye to your old computer, and you're getting $220 for it, tax included. Now, you're not using all your pocket money for this; you're getting some help from the bank in the form of a loan. Nice, right?

Now, in your special tech diary, you'll write down two things:

How much the new computer cost (including the sales tax) and that you used a bank loan.
How much you got for your old computer (including the sales tax).

It's like creating a story of your computer adventure in your book! So, in simple terms, you're recording the money part and the gadget part to keep track of your tech journey.

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