Discount Posting Bookkeeping Question

How To Post Insurance Payout

One of our business vehicles was totaled. The insurance company has just paid it off. What is the best way to post it in my accounting software? It currently is still listed in the Long Term Liabilities section.

accounting@coltsecurity.com

Post to Which Account

If an employee of a restaurant leaves food out to spoil. The employer takes the money for the loss out of the employees next paycheck.
The employee's check will show a deduction for $25. Does that goes against sales or purchases. Which account will be debited and which credited?

Hello,

Thank you for your question.

I believe that the deduction from the employee's paycheck would be credited to purchases (COGS), since it is a purchased expense that is being reimbursed.

Posting

When you start a sole proprietership business and paid expenses out of your pocket before receiving income where do you post that in the books?

Posting 1031 Basis from Sch E to LLC

by mes
(Jefferson OR)

Do you post the carry over basis for 1031 property as a debit to fixed assets and a credit to equity? If not --- how do you post it?

Posting a Loan Correctly

I loaned another company $25,000.00 and later that week they paid it back in full. How should I post this in Quick Books?

Hello,

Thank you for your question.

The loan would be posted to an other asset account in QuickBooks as follows:

CREDIT CASH $25,000
DEBIT LOAN RECEIVABLE $25,000

While the repayment of the loan would be posted as:

DEBIT CASH $25,000
CREDIT LOAN RECEIVABLE $25,000

Posting Adjustments To The Chart of Accounts

by David
(England)

Mr Davis asks me to make the following changes to the chart of accounts:

Depreciation is to be charged for Feburary in the following amounts:

Plant & Machinery £250
Office Equipment £200
Motor Vehicles £150

I am using Sage 50, how do I carry out this posting?

Posting an Insurance Premium Refund

by Teresa
(Glen Allen, VA)

What two accounts do I post an insurance premium refund to?

Posting Credit Card Purchases

by Cougs
(Toronto, ON, Canada)

What is the cleanest way to enter a purchase of materials by credit card? Where on the balance sheet should the credit card be - with the bank accounts as an Asset or with Liabilities like a loan payable?

Posting Insurance

by Gloria
(Calgary, AB)

How do I post Auto Insurance that is paid in installments? Do I post the total renewal amount then post the monthly deductions against it?

Posting Sales And Purchase Invoices After Month Close

A project closed on 5/19/2010 and we like to invoice on the project close date. Info was not sent to accounting for the invoice to be created until 6/4 though. CFO said to back date invoices so we can maintain our 30 day payment terms and get paid 30 days after the project closes. He probably didn't forsee this problem.

Shouldn't I date the invoice from 6/1 at the earliest though?

Posting Start-up Expenses For Sole Proprietor

I have just recently started a bookkeeping business from my home. I have incurred appx. $700.00 in start-up expenses paid by my personal checks, cash or credit cards. The business has not generated any income as of yet should I post these expenses to an equity account?

Thanks for your help.

Posting to a GL Account

A credit is posted to your checking account by your bank because you transferred funds from another account to cover an overdraft. When posting this credit in your checking account register, what GL account should you post to? It's not "bank service charges" or "NSF" charges....

Hi,

Thanks for your inquiry. If the other account was a personal account, the credit would be posted as an Owner's contribution.

Proper entries for business owner's mortgage payment

by Yolanda
(Philly)

An owner bought a building and uses it to be his daycare center. The building is under his name and his mortgage check payment is made out of his daycare. How do I post this payment correctly? Treat it as a rent expense to the daycare and to owner as income or... one more thing his daycare is non-profit under registration.

Hello Yolanda,

Thank you for your inquiry.

First, the owner would need to set-up the building and mortgage accounts. If the building and loan value were 100,000, the transaction would be as follows:

DEBIT 100,000 Building (Asset)
CREDIT 100,000 Mortgage Loan Payable (Liability)

Then each mortgage payment would be recorded as follows:

CREDIT Cash Account
DEBIT Mortgage Loan Payable (principal portion)
DEBIT Loan Interest Expense (interest portion)

The interest portion of the payment is the only amount that is deductible, while the building itself would be depreciated.

Great question!