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In Sales Journal , only credit sales or sales on account transactions are recorded while in Subsidiary Sales Journal an individual or one single customer's sales transactions (sales on account transactions) are recorded. A sales journal is a Master Or Control Journal where all of the individuals or customers' subsidiary sales journal transactions are recorded collectively e.g., credit sales to Mr. A ($300) and to Mr. B ($500) are recorded in sales journal as shown below:                          Accounts Receivable a/c  $800                                                                    Sales a/c  800                                       ...

A Bad Debt Expense (BDE) usually plus or positive because when it incurs, we debit it which is a positive or favorable side as expense increases on debit side. Bad debt expense can be minus or negative in case of credit as expense decreases on credit side when these are closed to Income Summary Account . In case of recovery of bad debt, we reverse the actual entry (which is a debit to BDE Account and a credit to Accounts Receivable Account ) of bad debt expense incurred i.e., a debit to accounts receivable account and a credit to BDE account. Now, the bad debt expense account shows negative balance as it is credited.

The correct answer of this Multiple Choice Question (MCQ) is D), as the Net Worth is the difference total assets minus total liabilities. It is calculated from the following Accounting Equation : Net Worth (Owner's Equity Or Capital)  =  Total Assets - Total Liabilities (Rights of Outsiders) Net worth is the rights of the owner against the assets of the business. The more the customer has assets greater than total liabilities, the more stronger' net worth (positive net worth) of the customer has during the period. However, negative net worth (liabilities are greater than assets) indicates that the business is unable to meet its external and internal liabilities which is not a good sign for running a smooth business. Assets are owned, possessed and controlled by the customer's business are enforced by valid claims against the rights from outsiders and owner of the business while liabilities are debts due which are payable to outsiders against the assets of the business....

When the company or employer gives An Asset to an employee as a gift , then there is no proceeds i.e., cash is not received. In this journal entry, the asset is credited with original cost or historical cost and accumulated depreciation is debited upto the full use of assets during the accounting period. The difference is the Non Operating Expense / Income. Example: ABC company gives a laptop of $5000, purchased on 1st January, 2022 with useful life of 10 years with no residual value, to an employee, Mr. A. The laptop gifted to employee on 1st January, 2024. The Method of Depreciation is straight- line method with rate of depreciation is 10%. Record the journal entry in the book of ABC company for the laptop gifted to Mr. A on 1st January, 2024. Given: Cost of Laptop = $5000 Useful Life = 10 Years Depreciation Method = Straight-Line Rate of Depreciation = 10% Calculation: Straight-Line Depreciation = Cost of Laptop - Residual Value / Useful Life       = $5000 - 0...

The correct choice this Multiple Choice Question (MCQ) is a), as Expenses are the results of utilizing of services. For example, if the company paid Rent Expenses for the month, then it is possible for the company / corporation to run the business and provides its services to clients and earns revenues during the accounting period. Without paying rent expenses and other expenses the business can't be carried on and as a result services can't be consumed or performed. Other options of this mcq are incorrect. Using up Liabilities resulted in a debit to liabilities account and a credit to cash account or bank account. Purchasing assets resulted in a debit to assets account and credit to cash or accounts payable account, so it is not the right choice. Expenses decrease Owner's Equity while Revenues increase Owner's Equity. So, expenses are very important to incur to earn revenue for the business.