For the purpose to analyze sample general ledger journal entry first let us distinguish two steps of this concept, i.e.: business transactions having an impact on the financial position of the business are first recorded in the general journal, which is one of the … [Read more...]
General Ledger Definition And Accounting
In the accounting we call ledger a group of accounts used by the business for the accounting purposes. We can find two types of ledgers: general ledger subsidiary ledger General Ledger Coming further through General Ledger tutorial, first of all let … [Read more...]
Financial Statement Analysis
What Is Financial Analysis? Financial analysis is certain procedures and methods applied to determine the past, present and also the future status and performance of business with the aim to compare how the business performed in the past, how it performs now and use such data … [Read more...]
Fixed Asset Accounting – Disposal of Fixed Asset
Disposal of fixed asset is a sale which generates profit or loss, which is a difference between sales price and net book value at the disposal time. Fixed assets are purchased by the business not with a purpose to resell them, therefore they are being sold after some period of … [Read more...]
Property Plant & Equipment – Depreciation Methods
Here I would like to explore the essence and nature of depreciation and cover main depreciation methods. Nature & Essence Of Depreciation Depreciation is the term used in accounting to define allocation of cost of fixed assets over the years during which these … [Read more...]
Property Plant & Equipment Accounting – Depreciation
Depreciation applying one of selected depreciation methods is used as cost of acquired non-current tangible assets is not included into the income statement at the moment of acquisition. The reason for this is that these assets are being used in the business for quite long-period … [Read more...]
Bank Reconciliation Statement Example
Before exploring bank reconciliation sample, it is worth to remind yourselves bank reconciliation process, which has the following main steps: 1st step: we identify and calculate the difference between bank statement and cash book 2nd step: we compare cash … [Read more...]
How To Do Bank Reconciliation?
Before exploring how to do bank reconciliation, you should remember two basic concepts which will be used in this process: One is bank statement - list of all transactions which occurred during a particular period of time and impacted cash in bank account of business. … [Read more...]
Basic Accounting Exercise – Adjusting Entries
Exercise Condition: The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ … [Read more...]
Accounts Receivable Accounting – Calculating Net Value
Exercise Condition: Wessley Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $80,000 of revenue on account during 2006. During 2006 Wessley collected $64,000 of cash from its receivables accounts. The … [Read more...]