Category: journal entry

Depreciation and Fixed Assets

Fixed assets must be differentiated from current assets and investment assets. Current assets are assets with a value available to the business in the short term, which is usually taken to mean up to a year. These are cash and assets used in the course of business, such as stock and debtors(money owing by customers). […]

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Double Entry Accounting

At the first look, it seems single entry is very easy way to record your financial transactions but single entry has many disadvantage. double entry has strong structure and protect you from some basic mistakes in balance sheets so learning and practice double entry principle is recommended to have a perfect double entry accounting for […]

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Value Added Tax in Bookkeeping

VAT is a simple concept that has somehow managed to get very complicated in practice. Its complexities once led to a celebrated court case to establish whether a jaffa cake is a cake or a biscuit. If you enjoy a jaffa cake with your afternoon tea, you will be pleased to know that you are eating a cake which […]

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How to Post Sales & Stocks in Bookkeeping

Businesses operate by selling goods, services or both. A business that only sells services does not have account for stock, but businesses that sell goods like a shop (either bought in or manufactured by itself) must keep stock accounts and should carry out periodic stock-takes. Stock Accounts Stock Account The cost of goods purchased or manufactured is debited to […]

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How to Sales Journal Entry

Almost any business has sales of items and services and sales journal Entry for invoice is a most too. some of company use accounting software to record their sales and some company intend to have a record on paper too because they cloud not trust of data lost in computer systems. Any sales for cash […]

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