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Bought Printer For Cash / Cheque Or On Account / Credit Journal Entry With The Help Of An Example When a company or corporation purchased a printer for cash or by cheque, for use in the business, then we debit printer account (or Office Equipment Account ) and credit cash or bank account. If the company purchased printer on account or credit, then, printer account, as an asset, is debited and Accounts Payable Account / Sundry Creditors Account is credited. Example: A company purchased a computer printer on account for $500. The entry to record this Business Transaction is shown below:                               Computer Printer a/c  $500                                                                        Accounts Payable a/c  $500                                                   (Computer Printer Bought On Account) As Computer printer, which is a Fixed Asset , is coming into the business, so we debit it and credit accounts payable account as the liability to p

Journal Entry For Commission Received Partially By Check And Partially Received In Advance We can either record two entries or a single combine entry. In both cases, the result is the same. Method 1 Firstly, we record the entry at the time when the Commission Received in full amount:                                           Bank a/c  $20,000                                                               Commission Revenue a/c  $20,000                                                          (Commission Received By Cheque) The portion of Commission revenue account of $10,000, which is not earned, is debited by transferring it to Unearned Commission Revenue Or Commission Received In Advance Account as shown below:                       Commission Revenue a/c  $10,000                                                                    Unearned Commission Revenue a/c  $10,000                                                  (Unearned Commission Revenue Is Recorded)

Unearned Revenue Adjusting Entry Resulted In The Debit And Credit To What Accounts? In an Unearned Revenue Adjusting Entry , we debit Unearned Revenue Account as a Current Liability and credit relevant Revenue Account when the company earned the revenue account. Initially, when the company received cash / bank from clients in advance for services which are to be rendered in future, then cash or bank account is debited and unearned revenue account, as a current liability, is credited as the company did not earn the revenue and now it has to performed the services against the cash or check / cheque received from the clients. So, initially, when the company received Cash or check received, and deposited into bank account, from client, then we record the following entry as shown below:                                 Cash a/c / Bank a/c  XXX                                                                    Unearned Revenue a/c  XXX               (Cash Or Check Received, And D

Answer Of True Or False Question Current Ratio is calculated as Current Assets divided by Current Liabilities for the period. If the current assets are more than then the company can easily meet its short-term debts. If current ratio is equal to 1, then it means that the company all the current assets are used to offset current liabilities. If the current ratio is more than 1, then the company has more current assets to meet current liabilities. If the company has current ratio less than 1 then the company has not enough current assets to meet current liabilities. It is “False” as proved from below calculation: We know Current Ratio is equal to the following formula: Current Ratio  =   Current Assets / Current Liabilities) Here: Current Assets = Cash + Marketable Securities + Accounts Receivable + Inventories By putting the value, we have: Current Assets = $75,000 + $11,000 + $90,000 + $225,000 = $500000 Current Liabilities  =  $200,000 Now, putting the value o

The Correct Answer Of Short Question Is  T-Account The most convenient and fastest way of transferring Journal Entries to the  Ledger is by using T-Account as it is easy to record accounts (Assets, Liabilities, Equity, Revenues and Expenses) on t-account having a title of a particular account and having a left side (or debit side) and a right side (credit side). For example, if salary t account is prepared, then it is shown below: Salary T Account For The Month Of July, 2023   Date            Particulars             Amount             Date           Particulars          Amount July 2023                                          $               July 2023      Particulars                  $  5th July          Cash a./c             3000                                                                                     31st July      Balance c/d          3000 The entry recorded on 5th July, 2023, is transferred from journal. The balance carried down (Balance c/d) shows the balance whi

Is Double Entry System Better Than Single Entry System And Why? Yes , it is “True” that Double Entry System is more popular as it completes scientific method i.e., it follows a complete Accounting Cycle Process or follows Steps Of Accounting Cycle . It provides both aspects of a Business Transaction i.e., For every Debit, there must be a credit with an equal amount but in the opposite side. It provides more reliable information of accounting data as compared to Single Entry System because under Double Entry Of Bookkeeping, proper Books Of Accounts are maintained and updated supported by evidence documents. A proper accounting cycle is followed. Accounting transactions are journalized, posted through Journal and Ledger. A Trial Balance is prepared to show the list of total debits and credits. Financial Statements such as Income Statement, Balance Sheet,  Cash Flow Statements and Statement of Retained Earnings are  prepared. So, large and medium size businesses adopt Double Ent

Bad Debts Written Off are actual bad debts which is an actual loss to the company / corporation as you could not recover the amount of Credit Sales from those customers who failed to pay for goods sold or services rendered on account. So, the journal entry to record is to debit Bad Debts Account and credit Accounts Receivable Account . Treatment Of Bad Debts Written Off In Profit And Loss Account / Income Statement And Balance Sheet So, the effect of Bad Debts Written Off is on Profit And Loss Account is that we record it as an expense or loss in Profit and Loss Account and deducted the amount from Accounts Receivable or Sundry Debtors on Balance Sheet / Statement Of Financial Position.