Salary outstanding journal entry in Accounting What is salary? Salary is an expense for the business. It is to pay to an employee in exchange for services taken from him. When salary is not paid on time its becomes outstanding therefore it needs to show in the balance sheet as it is now a liability …
Journal Entry of Bill of Exchange in Accounting Meaning of Bill of Exchange According to the Negotiable Instruments Act 1881, a bill of exchange is defined as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to …
Journal Entry of Loss or profit on Sale of Asset in Accounting Sometime business need to sale their Fixed assets .Before we go further, we have to understand that what are Fixed Assets . Fixed Assets : Fixed assets are the long-term tangible assets that are used by business in generating income. Example Land and building …
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How to make a journal entry of Sale in Accounting Before we go further, we have to understand the what are goods. Goods are item which are purchased to be sold . Sales accounts are made when goods purchase is sold. Sales account is nominal by nature or some considered it as real account as …
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How to make Journal Entry of Purchase Accounts Before we go further, we have to understand that what is purchase accounts. When goods are purchased by business to be sold are known as purchase and in accounting we have to write purchase as purchase accounts. Purchase account is nominal accounts by nature means it’s an …
Interest on capital Journal Entry What is Interest on capital ? A Business invested money is business in exchange of that he will earn profit or sometime it is also possible there can be any loss in the business . If in some case it he not invested that money in business he will keep …
JOURNAL ENTRY ISSUE OF SHARE CAPITAL IN CAPIAL ACCOUNTS As we lean earlier if company takes money it takes in parts. Example like Share value Rs 10 in 3 parts 3+5+2 is to be received from the public it will be divided as given below Division of share Rs 10 3 Application money 2 Allotment …
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BUSINESS TRANSACTION AND EVENT IN ACCOUNTING BUSINESS TRANSACTION A business transaction is an economic activity of the business that changes its financial position .Wherever any business transaction takes place ,it results in a change In the value of some of the assets, liabilities or capital. Features of business transaction It involve some economic activities when …
Journal Entry Deferred Revenue Expenditure Journal Entry Deferred Revenue Expenditure Deferred Revenue expenditure is that expenditure which is revenue in nature but the benefits of those are derived over a number of years. The benefits of such expenditure last generally for a period of 3 to 7 years. Deferred revenue expenditure is not completely debited …
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HOW TO MAKE JOURNAL ENTRY OF LOAN IN ACCOUNTING Loan is a liability for business hence f has to pay . It is accounting entry where loan is credited a sits liability to show in books of accounts and when loan is paid loan account is debited to adjust the loan paid Example Amar Traders …
