Comments for Gas Station Accounting

Average Rating starstarstarstarstar

Click here to add your own comments

Oct 12, 2010
Rating
starstarstarstarstar
Gas station Accounting
by: Anonymous

In the 1st Case. (Accrual Method)

All you have to do is deposit the money in your bank and record Bank $5000(DR), Revenue $5000(CR).

When preparing your P/L, the account will look like below"

Dr. COGS $4950
Dr. Acct Receivable $50
CR Revenue $5000

2nd case

Dr COGS $4850
Dr. Discount given $100
Dr. Acct Receivable $50
Cr.Revenue $5000

The above suggestion applies to small business not subject to IRS rules.

Balance Sheet.

Assuming you deposit the money in your bank in case 1 above:

Dr Bank $5000
CR Inventory 5000

When you write a check of $4950 to pay Sunuco, after deducting your $50, bank decrease by $4950(CR), Current liability decrease by $5000(DR), Accounts receivable decrease by 50(CR).

U can address the discount issue the same way. depending on how your account is set up. It could be a reduction in revenue or just as expense. either way just cut $4850 for Sunuco'

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Bookkeeping Questions and Answers.

Return to Gas Station Accounting.

Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you every month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.

Like Bookkeeping-Basics.net?