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Telephone Bill Payable Journal Entry Whe n the company received the telephone facilities for the period but the payment is not made for the period, then such Telephone Expense is accrued for the period and it is the Current Liability for the company to pay to the Telecom Company for the month as it is payable or outstanding due to non-payment. It is recorded in the Balance Sheet . In that case, the following adjusting entry is recorded as shown below:                                  Telephone Expenses a/c   XXX                                                                       Accrued Telephone Expenses a/c   XXX             ...

When Telephone Expense is paid for cash duri n g the period, the n we debit telephone expense account and credit cash account as shown below:                                       Telephone Expense a/c   XXX                                                                                Cash a/c   XXX                                                        (Paid Telephone Expenses For Cash) Paid Telephone Expenses By Cheque Journal Entry Whe n such telepho...

Purchases Ledger And Purchases Ledger Control Account A Purchases Ledger is prepared to record only Credit Purchases related to individual suppliers’accounts ( Accounts Payable / Creditors ) while a Purchases Control Ledger Account shows collective information of each credit purchases at one place. Each Purchases Subsidiary Ledger Account is prepared to make sure that the sum of balances of each credit purchases must be equal to closing balance of one single purchases control ledger account for the accounting period.

The Primary Purpose Of Control Ledger Account The mai n purpose of a Control Ledger Account is to represent relevant Subsidiary Ledger Accounts for the accounting period so that a finalized balance of a ledger account is found out. The company may easily find out the information of an Account by seeing the control ledger account and compare it with the subsledger accounts in order to check the error or mistake, if any made in the subledgers accounts.

A Cash Book is both a Journal and a Ledger in which only Cash Sales are recorded while a Sales Book is only a journal in which only Credit Sales are recorded. On daily basis, sales book provides relevant information related to credit sales i.e., how much credit sales is made with Accounts Receivable (Customers) while cash book is used to show only cash sales made with customers chronologically (date-wise).

Legal Fees VS Professional Fees In Accounting Legal Fees is the amount paid by the company for meeting legal requirements under the law such as hiring a lawyer to file a case or for solving a legal case related to business matter while a Professional Fees is the amount paid for hiring professionals such as accountants, doctors, teachers, etc., for solving operational tasks of the business. Legal Fees is required under the law to start or operate a business, product or a service legally while professional fees may or may not required depending upon the company’s decision to hire a professional person or not for improving operational performance of the business, such as in case of Single Entry Accounting System .

Sales Account is a Sales Subsidiary Ledger Account in which individuals accounts related to sales account are recorded. Any Credit Sales made with each customers, Accounts Receivable / Debtors are recorded in it while the sum of individuals’records related to each credit sales is recorded in one Single Sales Ledger Control Account . In order to Reconcile Sales Ledger Control Account with Sales Subsidiary Ledger Accounts, the sum of balances of sales subledgers should be always equal to the closing balance of Sales Ledger Control Account.

Professional Fees VS Consulting Fees In Accounting P rofessional Fees is the payment made to professional bodies for the qualified works i.e., preparing Books of Accounts , auditing / checking of Financial Statements etc. while a C onsulting Fees is paid for getting advice, suggestions for a project in order to solve the problems such as getting expert advice from a qualified accountant about accounting systems, getting investment plans’s ideas in a project from a investment company, etc. Professional Fees is created for specific tasks such as for operational system, a qualified accountant is hired to work on it and install the system for the business works while consulting fees is paid for those works which required an expert advice for managing business projects in order to successfully complete these one or to start a new useful project for the business. For Professional Fees So, we can say that when specialized skill is required to perform a specific task to...

Professional fees is the amount of specialized works or tasks assigned to specialized or qualified persons such as Accountants, Lawyers, Doctors, etc., These persons having a qualified degree to perform their projects. Professional fees is an Expense for the company which hires such qualified persons for the business’s works and a Revenue for these professional persons as they provide services to the company. For the business which receives the services and makes payment to professionals, the journal entry may be as follows:                                Professional Fees Expense a/c   XXX                                                                             ...

Registration Fees Definition And Meaning Registration fees is the fees which is paid to the registrar of the office for starting a new business or starting a new product / brand or service such as starting a real state business or starting a property advisory service. When the company purchased new assets such as office buildings, vehicles, furniture, etc., then the registration fees is also paid for acquiring the ownership of these assets. The journal entry to record registration fees is shown below:                                      Registration Fees Expense a/c    XXX                                                                                   ...

What Are Legal Services And The Accounting Treatment Of These Services Conducted During The Accounting Period? Legal Services are those services which are provided when there is a need of legal works such as legal requirement of a business to register, to operate, to file a case in the court for a business matter, etc. Legal services are provided by law firms, lawyers, attorneys, court of law, etc., to clients carrying on the business. For a company’s business, the legal services are Expenses and these are recorded on the Income Statement . The journal entry to record legal services is shown below: For Cash /  Bank                                      Legal Services Expense a/c   XXX                                        ...

Trial Balance Debit And Credit Items List A Trial Balance shows the balances of Temporary Accounts (Revenues & Expenses) and Permanent Accounts (Asset, Liabilities & Equity) in order to show arithmetic accuracy of the ledger accounts' balances transferred from Books of Original Entry (Journal) and Books of Final Entry (Ledgers). B elow is the debit and credit list of Five Types of Accounts appear on a trial balance: S. No.           Particulars                                        Amou nt          Amount                                                                             ...

Accrued Legal Fees is the fees which is not paid to the law firms against the services which had been rendered to the company by such law firms during the current accounting period. It is a Current Liability for the company’s business as the payment is not paid to the law firms while the services are rendered to the company for the period. It is shown on the Balance Sheet . The adjusting entry to record accrued legal fees is shown below:                                          Legal Fees Expense a/c  XXX                                                                                Accrued Legal Fee a/c   XXX ...