Journal Entries for Credit Sales Credit sales refer to the purchases that the customers make with delayed payment. As the customers do not need to make the payment immediately after the purchase, they can generate cash by using the merchandise they bought so that they can pay the seller. Hence, reasonable payment terms enable the …
An Overview of Deferred Expenses Deferred expenses are the costs that a company has incurred, yet it has not consumed those costs. When the bookkeepers from a bookkeeping firm in Singapore are dealing with such expenses for business owners, they will record them as the company’s assets until the business consumes the goods or services. …
Which Ledger Accounts Will Normally Have Credit Balances? Do you know that some accounts will usually have debit balances, while some will typically have credit balances? In accounting, having a debit balance (Also see Which Ledger Accounts Will Normally Have Debit Balances?) means that the amount on the debit side of the ledger will be …
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Which Ledger Accounts Will Normally Have Debit Balances? In general ledger accounts, there are two types of balances. To find out the type of balance a ledger has, one should determine the side of the ledger that has a greater balance. A ledger account that has a debit balance will have a greater debit total …
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Direct Expenses and Indirect Expenses It is common for business owners to incur expenses almost every day. To make sure that they have a tight grip on the financial condition of their business, business owners should make sure that they know when, where and why they spend their money (Also see Business Expenses That A …
An Overview of Gross Margin The gross margin shows the amount that a business has earned from selling its products or services before deducting any selling and administrative expenses (Also see Direct Expenses and Indirect Expenses). The sum of gross margin shows how much funds the company is left with to pay for activities it …
What is an Accounting Cycle? You may perceive the accounting cycle as a series of events which play an essential role in determining, documenting, and analysing the information about the transactions a company has made. When each accounting period has ended, the accountant of the company should aggregate those transactions into the company’s financial statements …
How to Differentiate Invoice and Receipt? For most people who are not familiar with documents used in business transactions, invoice and receipt seem to be the same document as they do not know the meaning and differences between them. However, in the eyes of the bookkeepers from a bookkeeping firm in Singapore, both serve different …
Errors That You May Commit When Recording Business Transactions As a business owner, do you know how you should record the accounting entries (Also see Vital Elements in Bookkeeping)? Understanding the correct way of posting the entries in your books of accounts is crucial as this prevents your records from getting messy. Apart from recording …
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Vital Elements in Bookkeeping Bookkeeping is the process of recording daily business transactions that have taken place in a company. Such transactions include the receipts, payments, sales (Also see Journal Entries for Credit Sales) and purchases. Bookkeeping is one of the initial parts in the accounting process, and timely records ensure that the books of …
