Invoice Accounting (Inv directly in AP) Expense $100 Accounts Payable $100 Invoice from Purchasing Accrual $100 Accounts Payable $100 Invoice Cancellation Accounts Payable $100 Expense $100 Payment is made Accounts Payable $100 Cash $100 Void a payment Cash $100 Accounts Payable $100 Pre-Payment is made Prepayment $100 Cash $100 Item is received after Pre- Payment Expense $100 Prepayment $100 Debit Memo Accounts Payable $100 Expense $100 Credit Memo Accounts Payable $100 Expense $100
Here are the entries made by FA. Transaction Natural Account Debit Credit Asset is added Asset Cost $100 Asset Clearing $100 Asset Depreciation Depreciation Expense $100 Accumulated Depreciation $100 Asset Retirement W/o proceeds and W/o removal cost Accumulated Depreciation $60 Gain/Loss $40 Asset Cost $100 Asset Retirement With Proceeds, W/o Cost of removal Accumulated Depreciation $60 Gain/Loss $40 Gain/Loss $10 Proceeds from Sale $10 Asset Cost $100 Asset Retirement - With Cost of removal Accumulated Depreciation $60 Gain/Loss $40 Gain/Loss $5 Cost of removal Clearing $5 Asset Cost $100
Simple Accounting Entries in Receivables Standard Transaction Receivables a/c Dr To Revenue a/c Cr To Tax a/c Cr To freight Cr Revenue recognization Invoice with rules (in 1 st period of rule)
Bill in Advance Receivables a/c Dr To Revenue a/c Cr To Tax a/c Cr To freight Cr In each period when revenue is recognized Unearned revenue a/c Dr To revenue Cr Invoice With rules Bill in Arrears Unbilled Receivables a/c Dr To revenue a/c Cr In each period when revenue is recognized Receivables a/c Dr To Unbilled Receivables a/c Cr To Tax a/c Cr To freight Cr Debit memo Entry Receivables a/c Dr To Revenue a/c Cr To Tax a/c Cr To freight Cr Credit memo Entry Against Invoice, chargebackRevenue a/c Dr Tax a/c Dr Freight Dr To Receivables a/c Cr When credit memo adjusted with Invoice, Chargeback, Receivables a/c Dr To Receivables a/c Cr Credit memo against commitmentRevenue a/c Dr To Receivables a/c Cr On a/c Credit Revenue a/c Dr Tax a/c Dr Freight Dr To Receivables a/c Cr Deposit Entry Receivables a/c Dr To unearned Revenue a/c Cr Receivables a/c Dr To Revenue a/c Cr To Tax a/c Cr To Freight a/c Cr Adjustment on Invoice against deposit Unearned revenue a/c Dr To Receivables a/c Cr Guarantee Entry Unbilled receivables To unearned Revenue a/c Cr Adjustment on Invoice against on GuaranteeReceivables a/c Dr To Revenue a/c Cr To Tax a/c Cr To Freight a/c Cr Unearned revenue a/c Dr To unbilled Receivables a/c Cr Charge back Entry CB Adjustment a/c Dr To Receivables a/c Cr CB a/c Dr To CB Adjustment a/c Cr Adjustments of Charge back Positive adjustment Receivables a/c Dr To Adjustment a/c Cr Negative adjustmentAdjustment a/c Dr To Receivables a/c Cr Posted by Natchirajan Shen
Simple Accounting Entries in Purchasing At the time of receiving Material value a/c Dr To Inventory AP accrual account Cr At the time of invoice Inventory AP accrual a/c Dr To AP liability a/c Cr At the time of Payment AP liability a/c Dr To Cash Clearing a/c Cr At the time of Clearing Cash clearing a/c Dr To Cash a/c Cr Stock sent to the sub inventory Material a/c Dr To receiving a/c Cr Goods in TransitGoods in transit a/c Dr To Inventory AP accrual a/c Cr Receiving of Stock Receiving a/c Dr To Inventory AP accrual a/c Cr Inspection of stockInspection a/c Dr To Receiving a/c CR Material a/c Dr To inspection a/c CR Encumbrance for requisition, PO, Invoice PO charge account a/c Dr To reserve for Encumbrance a/c Cr
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