Profile cover photo
Profile photo
Double Entry Bookkeeping
30 followers -
Learn Bookkeeping and Accounting Online For Free
Learn Bookkeeping and Accounting Online For Free

30 followers
About
Posts

Post has attachment
The total sales variance sometimes referred to as the sales value variance is the difference between the actual sales and budgeted sales and can be split and analysed into the sales volume variance and the sales price variance.
#bookkeeping #accounting
Double Entry Bookkeeping
Double Entry Bookkeeping
double-entry-bookkeeping.com
Add a comment...

Post has attachment
The net income from the profit and loss account is transferred to the partnership appropriation account in order that it can be adjusted for partner salaries, commissions, and interest. Any residual net income after adjustment is distributed to the partners.
#bookkeeping #accounting
Double Entry Bookkeeping
Double Entry Bookkeeping
double-entry-bookkeeping.com
Add a comment...

Post has attachment
Departmental accounting is used by a business to assess the profitability of each of its departments using either the gross profit, contribution, or net profit method.
#bookkeeping #accounting
Add a comment...

Post has attachment
The trading and profit and loss accounts are temporary accounts in the general ledger. The trading account shows the gross profit and is particularly useful for a trading business which buys and sells finished products as it allows the gross profit and gross profit percentage to be calculated.
#bookkeeping #accounting
Add a comment...

Post has attachment
The sales return day book is used to record goods returned by customers. The sales return book is not part of the double entry posting and is simply a chronological list of credit notes issued to customers and used to post the accounts receivable and general ledgers.
#bookkeeping #accounting
Add a comment...

Post has attachment
The purchase return day book is used to record goods returned to suppliers. The purchase return book is not part of the double entry posting and is simply a chronological list of supplier credit notes used to post the accounts payable and general ledgers.
Add a comment...

Post has attachment
When a partner retires the existing partnership is dissolved. To calculate the amount due to the retiring partner net assets are adjusted to fair value. Depending on the method of partnership accounting used bonus or goodwill journal entries may be necessary if the amount paid to the retiring partner differs from their adjusted net asset value.
#bookkeeping #accounting
Add a comment...

Post has attachment
As a business grows it may be necessary to involve additional people either to obtain access to more capital or to provide expertise. One way of introducing additional people is to form a partnership.

When a partnership is formed each partner will normally introduce capital into the partnership. The capital can either be cash or alternatively in a non-cash form such as machinery, vehicles, accounts receivables or buildings which are accounted for at fair value.
#bookkeeping #accounting
Add a comment...

Post has attachment
There are many differences between trade and cash discounts. A trade discount is used to encourage more sales whereas a cash discount is used to encourage prompt payment of invoices.
#bookkeeping #accounting
Add a comment...

Post has attachment
Fixed assets are recorded in the fixed asset register and each fixed asset needs its own fixed asset register card to record full details of the asset.
#bookkeeping #accounting
Add a comment...
Wait while more posts are being loaded