Journal entry of Rent received . What is rent received? Rent received is income by nature Income Is money received regularly for work ,interest or for services provided. Rent received is income because its for service provided to the tenant for providing room, house etc. Income is recurring in nature. Read more…
Opening entries In Accounting In Accounting Assets and Liabilities are transferred from one financial year to another financial years . Opening Entries are those entries which are made at the starting of accounting years . The opening balance is usually that balance which is brought forward at the beginning of Read more…
Business started with cash journal entry When business is started a capital is introduce in business which is generally done by the partners or owner of business in form of cash or other assets. What is Capital Account: The money which the owner invested in business is known as capital Read more…
Provision for doubtful debts When an amount becomes irrecoverable from debtors the amount is debited to the Baddebts account and credited to the personal account of the debtors. But this is not sufficient. At the end of the year, the list of debtors may still contain some debts which are Read more…
When the stationary purchased during one accounting period is not used completely the remaining stationary need to be transferred to the next accounting period by creating a journal entry in the books of accounts. This entry is made at the end of the accounting year. Example . Purchase stationery during Read more…
What is a journal entry of expense and income in accounting? What is an expense in accounting? An expense in accounting is the money spent, or costs incurred, by a business in its effort to generate profit. Essentially, accounts expenses represent the cost of doing business; they are the sum Read more…
What is a discount Received in accounting? When cash or cheque is paid to supplier discount is received from him. Discount received is profit for the business. The discount during the time of payment to the party. The only that is shown in the books of accounts are Cash discounts Read more…
What is the journal entry for cheque dishonoured? When a business received a cheque it debited its bank account and credited it party from which cheque is received. Now understand it with example Example 1 Sales made to Mr Mohan by cheque Rs 10,000. Journal entry of same will be Read more…
How to make Journal entry for interest on drawing What is Drawing? When ower of the business withdrawal money from business for his personal use it is known as Drawings. But it the business keeps on withdrawing money from the business for personal use it affects it business, therefore, to Read more…
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 Read more…