# Basic Bookkeeping Question

by Linus Longwa
(Tanzania)

More

What are:

Return outwards
Return inwards
Carriage out
Carriage inwards

## Book Keeping Capital

by Med
(London)

Book Keeping Capital

If a person has £4000 in cash, stock valued at £2400, business premises worth £16000, debts owing to him £1000, and a shop fitting worth £6000(of which £4000 has not yet been paid), what is the capital?

### Comments for Book Keeping Capital

Average Rating

 Jul 18, 2023 Rating BB by: Stephanie Capital, also known as net assets or equity, is calculated by subtracting total liabilities (what you owe) from total assets (what you own). Based on the information you provided: Assets Cash: £4000 Stock: £2400 Business premises: £16000 Debts owed to him (Accounts Receivable): £1000 Shop fittings: £6000 Total assets = £4,000 + £2,400 + £16,000 + £1,000 + £6,000 = £29,400 Liabilities Shop fittings not yet paid: £4000 Total liabilities = £4,000 Capital Capital (Net assets or Equity) = Total assets - Total liabilities = £29,400 - £4,000 = £25,400 So, the person's capital is £25,400.

## Book Keeping

All increases in assets are recorded in the appropriate asset account as?

Average Rating

 Apr 08, 2011 Rating Debit Assets by: Stephanie Increases to assets are recorded as a debit to the account.

## Bookkeeping Normal Debit Balance

by Tasha Howard
(Ark)

Which of the following accounts has a normal debit balance?

a.equipment
b.bank loan
c.owner's equity
d.accounts payable

Hi Tasha,

Thanks for your contribution. I believe the answer is a. equipment, as equipment is an asset account.

## Bookkeeping Test Q&A

1)When interst is received from customers, how is the transaction recorded?
2)What is Equity?
3)What is owner's Equity?
4)How is Petty Cas1h fund balanced?
5)What does current Liablilities include? a)a/p; b)wages a/p; c)mortgage payable or d) Short term notes?
6)What is included in Long Term Liability? a) Bond Payable b) a/p; c)a/r; or Bond Receivable?
7)At end of month, how are totals posted in Petty Cash Journal?
8)What is Net Income formula?
9)What is summarized on an Income Statement?
10)Which is a Liability? a) Prepaid Ins. b) Interest date to; c)a/r or d)Land and building?
11)What is Double Entry Accounting System?
12)All are credits EXCEPT: a) Decrease in Inventory b)Increase Owner's Capital c)An increase in Machinery D) Goes into debt?
13)Which is a Debit? a)Earning Revenue from sales b)An increase in Cash c)Spending of cash d)Office supply expense paid?
14)The company pays 2000 in wages, how would Expense entered in Journal?
15)This is true of Ledger EXCEPT: a)Tran. from Journal are transferred to Ledger b)Trans. from Ledger are transfer to Journal c)Each type of trans. is maintained separately?
15)What is Chart of Account?
16)What must happen for Trial Balance to balance at end of accounting period?
17)What is Notes Payable?
18)How do you Determine Depreciation- what is the formula?
19)How is current Depreciation value of Asset calculated?
20)What Journal entries is required if prepaid item is consumed over a period of time?
21)Closing Books- what is required from bookkeeper to bring expense account to zero?

### Comments for Bookkeeping Test Q&A

Average Rating

 Nov 24, 2011 Rating Answer about Double Entry Accounting System by: Anonymous A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts.http://en.wikipedia.org/wiki/Double-entry_bookkeeping_system

## Bookkeeping Accrued Interest

Accrued Interest

A) Johnny's corporation borrowed money and issued a note (in the amount of 10,000) to cover cash shortages during the slow season.

B) One month later, Johnny's has to account for the interest (in the amount of 900) on the note that has accrued.

A) 10,000 DEBIT Cash Account
10,000 CREDIT Notes Payable

B) 900 DEBIT Accrued Interest
900 CREDIT Notes Payable

## Bookkeeping Payment Expense

In the context of bookkeeping, how would one define or characterize a payment?

Average Rating

## Bookkeeping Cash Loan

A loan rm500 paid to us by cash. which one is credit and debit?

Entry would be as follows:

DEBIT Bank Account (Asset)
CREDIT Loan Payable (Liability)

## Bookkeeping Income Report

by Jennifer
(Australia)

Bookkeeping

How is a revenue/expenses report used to inform others about the budget?

### Comments for Bookkeeping Income Report

Average Rating

 Jul 18, 2023 Rating Revenue and Expenses Report by: Stephanie A revenue/expenses report, often referred to as a Profit and Loss Statement (P&L) or an Income Statement, is a critical financial document that provides an overview of a company's revenues, costs, and expenses over a specific period. This report is crucial for informing stakeholders about the company's budget in several ways. Revenue Understanding: The top of the P&L statement details the total revenue, which indicates the money generated by the company from its business activities. This can help stakeholders understand whether the company is meeting its sales targets and can be used to benchmark future budget projections. Cost Monitoring: The report outlines all the expenses incurred by the business, including Cost of Goods Sold (COGS), operational expenses, taxes, and more. This breakdown allows stakeholders to see where the company is spending money and if the spending aligns with the budget. Profitability Insight: By subtracting total expenses from total revenue, the P&L statement shows the net profit or loss. This bottom-line figure provides a clear indication of the company's profitability during the period, informing stakeholders about the effectiveness of the company's budget management. Trend Identification: Regularly prepared P&L statements allow stakeholders to identify trends in revenues and expenses over time. This can be used to forecast future budgets and inform strategic decision-making. Performance Comparison: The P&L statement can be used to compare the company's performance against its budgeted targets or other companies in the same industry. This can help identify areas of inefficiency and highlight where budget adjustments may be necessary. Remember, for effective budget management and communication, it's important to present this report in an understandable way, highlighting key figures and trends, and providing context where necessary.

 Jul 18, 2023 Rating Revenue and Expenses Report by: BB A revenue/expenses report, often referred to as a Profit and Loss Statement (P&L) or an Income Statement, is a critical financial document that provides an overview of a company's revenues, costs, and expenses over a specific period. This report is crucial for informing stakeholders about the company's budget in several ways. Revenue Understanding: The top of the P&L statement details the total revenue, which indicates the money generated by the company from its business activities. This can help stakeholders understand whether the company is meeting its sales targets and can be used to benchmark future budget projections. Cost Monitoring: The report outlines all the expenses incurred by the business, including Cost of Goods Sold (COGS), operational expenses, taxes, and more. This breakdown allows stakeholders to see where the company is spending money and if the spending aligns with the budget. Profitability Insight: By subtracting total expenses from total revenue, the P&L statement shows the net profit or loss. This bottom-line figure provides a clear indication of the company's profitability during the period, informing stakeholders about the effectiveness of the company's budget management. Trend Identification: Regularly prepared P&L statements allow stakeholders to identify trends in revenues and expenses over time. This can be used to forecast future budgets and inform strategic decision-making. Performance Comparison: The P&L statement can be used to compare the company's performance against its budgeted targets or other companies in the same industry. This can help identify areas of inefficiency and highlight where budget adjustments may be necessary. Remember, for effective budget management and communication, it's important to present this report in an understandable way, highlighting key figures and trends, and providing context where necessary.

## Bookkeeping Step By Step

Good Day

1. Bookkeeping to trial balance
2. Payroll to statutory return

We did everything manual I'm looking for a new job but am afraid because I dont know where to start as we did everything manual can't you maybe tell it to me step by step.

## Bookkeeping Gross Wages

1)a salary worker earned 33,000.00 is paid biweekly, what is gross wages each paid period?

### Comments for Bookkeeping Gross Wages

Average Rating

 Aug 01, 2015 Rating Importance of Bookkeeping by: Riyan Clark Bookkeeping is very essential these days for a profitable business to go smoothly. An entrepreneur must know the benefits of keeping the account clean at the end of the year. An experienced and qualified bookkeeper needs to be hired to take care of the accounts. Thank you for your valuable bookkeeping information.

 Jan 06, 2012 Rating How You Got The Bookkeeping Answer by: Candy Trouotman Great idea for your website! I'm sure this is handy for a lot of people.It might be helpful to share how you got that answer.Annual salary \$33,000divided by 26 payperiods in a year

 Nov 16, 2011 Rating Bi-Weekly Gross Payroll by: NancyE If I understood your statement regarding the \$33000 earnings; is the Annual Gross? If yes, then the bi-weekly gross is \$1,269.23.

## Bookkeeping Printer Personal Use

by Olga
(UK)

Oliver runs his own computer company.

He has taken a printer from stock and has given it to his daughter to use in order for her to print out her homework.

What entries do I need to put through the books?

## Bookkeeping Ledger Description

by Michelle
(Pennsylvnania)

Ledger

Could you clarify which definition accurately portrays the concept of a ledger in bookkeeping?

### Comments for Bookkeeping Ledger Description

Average Rating

 Jul 18, 2023 Rating Accounting Book of Records by: BB In the realm of bookkeeping, a ledger is an accounting book that records all the financial transactions of a business in a detailed manner. It's where all the information from the journals is transferred and organized into specific accounts, such as revenue, expenses, assets, liabilities, and equity, which makes it easier to review and understand the financial activities of the business. The ledger is essential for preparing financial statements and aids in providing an accurate picture of a business's financial health. The ledger forms the foundation for preparing financial statements and plays a pivotal role in offering a precise depiction of a business's financial status. To gain a more detailed understanding, you can visit this page on bookkeeping ledgers.

What advice would you give someone who is thinking about entering this field?

## Bookkeeping Cash Account

by Rabia
(Hounslow London)

Drew a 1200 cheque and cash put in cash account, where do the ledger entries go?

Hi Rabia,

Thank you for your contribution. If you wrote a check, the ledger entry would be:

CREDIT Cash Account
DEBIT Expense, Asset, Loan or Equity account depending upon what the check was written for.

The cash put into the cash account would be posted as:

DEBIT Cash Account
CREDIT Income or Equity Account (depending on where money came from)

## Bookkeeping Debits and Credits

In the bookkeeping process, for every transaction the sum of the debit entries must be equal the sum of the credit entries (in monetary value)

Is this true or false?

### Comments for Bookkeeping Debits and Credits

Average Rating

 Oct 05, 2011 Rating Debits Equal Credits by: Steph Yes it is true that in the bookkeeping process, for every transaction the sum of the debit entries must be equal the sum of the credit entries (in monetary value).

## Bookkeeping For an Artist

by Wendy McLennan
(Hamilton, Ontario)

Hello, I have been Bookkeeping for a few years now as an Owner/Operator from my home office. One of my clients gave my card to a well known artist in the area who plans to contact me for her Bookkeeping/Accounting needs. I am kind of nervous since I have not had to interview or seek out clients before.

They come to me from word of mouth ... but this potential client is famous and I guess I don't know where to start with the right questions to ask or the right info to tell her. I am the worst person to try to sell my own services .... I am terrible at selling my services to others ... I come across as "unknowledgeable" and unprofessional.

HELP. I need to know how to conduct myself at a meeting with this Artist ... and how to discuss Accounting in a professioanla manner. Do you have any advice that I can put to use right away.

Thank You
Wendy McLennan

## Bookkeeping for Issuing Shares to Employees

by Andy Mah
(Vista, CA , USA)

What is the double entry for for issuing shares to employees?

## Bookeeping Interview

by Kara
(Cazenovia, NY USA)

Q: Did you have to move to find you job? And about how long did it take you to find it after schooling?

Q: What types of benefits do you receive?

Q: What's the least amount of education needed and what is the most possible for a bookkeeper?

Q: What are you required to wear as a dress attire? Are you able to participate in casual Friday?

Q: Lastly, how big is your company on ethics and what are some examples?

## Bookkeeping Nightmare

I have a young man who started a construction business in November 2008, since that time he has not kept any books and has been paying for materials from his own bank account and credit card.

Any customer invoices that were paid to him were also deposited into his personal account and used for materials for jobs, office expenses etc. as well as personal use.

Any suggestions on how best to sort this out would be appreciated.

Hello,

This actually happens more often than you would think when someone is first starting out with a new business.

What I suggest you do is to go through his bank statements from the time he started his business and start categorizing his personal vs. his business income and expenses.

You can do this by setting up a Microsoft Excel Spreadsheet with the different categories in each cell across the top. Then manually enter each business transaction under the correct column heading and total each column at the bottom.

Or, you can enter the bank account income and expense transactions in QuickBooks, again coding each transaction to the different account categories.

I highly recommend using QuickBooks Accounting Software as you can also perform monthly account reconciliations and reports much easier than with MS Excel. But either way will work just fine.

Best Wishes!

## Bookkeeping Out Of Your Home in TN

by Judy
(TN)

I was told I should stop doing bookkeeping out of my home because I was breaking the laws of accountancy and can be turned in. This is the first I have ever been told this. A CPA told me this last night. What's up?

## Bookkeeping Quiz

The balance sheet reports the condition of the business for future period, for past period, or on a specific data?

Hello,

The balance sheet reports the condition of the business for a past period up to a specific date.

## Bookkeeping Question - Advanced Payment

A law office has recieved a fee payment in advance to pay for filing fees. How do you set up this account?

Should this be set up as a liability account?

Hello,

Advanced payments, or pre-payments, should be set-up as a liability account. For example, if you received \$100 advanced filing fee, it would be recorded as follows:

DEBIT \$100.00 Cash Account (Asset)

Then you would later apply the advance as follows:

CREDIT \$100.00 Filing Fees Account (Income)

## Bookkeeping software?

by Will
(California)

I have little knowledge of bookkeeping. At what point should I consider hiring a bookkeeper instead of using computer software?

I would highly recommend using computer software to do your bookkeeping regardless of whether you hire a bookkeeper or use the software yourself. QuickBooks Pro 2009 is a good version to get started with and offers some great built in tutorials.

Once you upload the software, play around with the tutorials for awhile to familarize yourself with all of the different day to day bookkeeping tasks involved with your type of business. After doing this, you should have a better idea of whether or not you will want to do the bookkeeping yourself.

Thank you for contributing! If you need any help as you go, please feel free to come back here anytime to ask another question.

Average Rating

 Aug 30, 2008 Rating Thank You by: Anonymous Thank you for you response. I plan on doing what you have suggested and will definitely come back if I have any other questions.

## Bookkeeping Transactions

In first time entering transactions for a business do I go by receipts or bank statements?

## Help Get Started in Bookkeeping

by Sandy Mania

Coaching

Please, teach me the book keeping and accountancy by this way and also send me email about that.
So I'm interested about that I need your help, this time I'm doing a job to the CHARTERED ACCOUNTANT so I need your help mam.

You teach me all things like taxes, bookkeeping, VAT, i daily read u r email....... and please tell me how I look forward in the future how I go forward in the future in that basis.......... so please, help me.................

Hello,

Best Regards!

## I wanna make bookeeping

by c/weli
(jhb)

i wanna make bookkeeping and wanna do it now

## In Bookkeeping

Where can we put the write off amount?

Hello,

You can put write-offs and bad debts to a Bad Debt expense account, but only if you have already claimed the income.

Typically, a cash basis company does not record bad debts, while an accrual basis company does.

## Keeping Books For a Convience Store..

by Pat Stanly
(Greensboro,NC. USA)

I was just ask to keep books for a convience store. They do not want to do inventory on a monthly basis but want a P&L statement monthly.
What is the best way to do an estimated inventory for COGS and GP ?
I have the daily Z report with total sales and tax,but they are not tracking individual items.
(The client handed me the checkbooks stubs and receipts for purchases. He is just opening the store and this is his first month open.
Any help on what would be the best way to start his book records would be greatly appreciated. I just have not had a lot of experience on doing retail with estimated inventory costs. (mostly true inventory)
I do have to say that I have been trying to use quickbooks to do this, but seems impossible at the moment).
PS

## On site bookkeeping

If you are going to hire a bookkeeper, do they need to be on site at the business? Specific to this situation, six investors built a large gym that is located six hours away from where they live. Control has been an issue. Is it necessary to have their bookkeeper at the gym, or should he/she be there with the investors? If a bookkeeper is supposed to process information, as long as they are fed the proper information their location shouldn't matter right?

## Organizing Client's Bookkeeping

Does anyone have a good system or method that is fast and efficient to organize and sort thru a client's paperwork that comes in as a mess for doing the bookkeeping? If so please let me know.

I am currently sorting thru a client's mess and being buried in the mess also of paper which includes with it a ton of receipts and bank and credit card statements etc. while sorting and am starting to get sick of the whole process.
Too much paper!!! Everywhere paper!!!

## Payroll Bookkeeping For Dummies

by Mary Ann
(Santa Monica CA)

I am not an accountant or bookkeeper. I am using quickbooks but the latest version does not include the ability to handle payroll manually. All the data needs to be entered by hand. The Museum I work for operates on a cash basis. The one exception is payroll which always has some aspects of it that ate accrued, such as employee/employer taxes and sometimes wages that are late being paid.

I do not know the correct places to make entries to reflect the 1}unpaid wages when they occur (current liability}, 2) taxes due, & 3) and the correct places to make entries when payroll checks are written and tax payments are made which reduce the current liability and bank balance, appear in the check register and appear as a paid expense on the P/L statement. All at the same time. Can you Help? MA

## Set Up Books

by Tracy
(muldrow, ok usa)

I am trying to do the books for an owner/operator truck driver. All I have to do is verify his settlement sheet and record income, adjustments, out of pocket expenses, and keep a running balance on his escrow. All the programs I have looked at are either more than I need or too complicated. All I need is simple spreadsheets. Is there a company that can set up my books to cater to what I need? In addition, help would be greatly appreciated for I have started over eight different times and as you might imagine I am getting very behind.

## Single Entry Bookkeeping- Recording a Refunded Amount or a Reimbursed Amount

A staff member registered for a conference using her credit card. The amount was recorded to expense as a positive amount. \$250 Expense

Then the staff member received a refund for the amount. Is that refunded amount recorded as a negative amount to expense? (\$250) Expense

Would this be the same scenario if a staff member purchased supplies, but then reimbursed the office for part of the supplies?

\$250 Supplies Expense
\$(50)Supplies Expense

Thanks a lot!

## Trust Bookkeeping

by Rachel
(Roseville, CA )

When dealing with a trust, should the bookkeeping be done in it's own seperate Quickbooks account or can it be added to the families Quickbooks account?

## Want To Know More About Bookkeeping

What does it take to be a bookkeeper?

## Where Did Bookkeeping Start

by Karen Castillo
({hilippines)

Where did bookkeeping start?

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