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The Accounting Basics BlogWelcome to the Accounting Basics Blog! The Accounting Basics Blog lets you know whenever there is a new lesson, article of interest, exercise, tutorial or an update to the Accounting-Basics-for-Students website. By subscribing to this blog you will be notified of these additions and updates within minutes of it going live. To subscribe, simply click on the orange button labelled 'RSS' and follow the instructions (RSS stands for Really Simple Syndication and is a way of distributing online info). Now, check out these latest lessons and updates: Accounts Receivable and InterestQ: I am trying to understand the accounts receivable principle for how creditors figure minimum payments. How is the interest versus principal during stages Permalink -- click for full blog post " Accounts Receivable and Interest " Scrap Gold And Inventory?Q: I have a company that buys gold from people (jewelry, coins, etc). They then send this gold to a company out of state who in turn sends them a check Permalink -- click for full blog post " Scrap Gold And Inventory? " Journal Entry for Credit Card Sales TransactionQ: Prepare the journal entries for the following credit card sales transactions (the company uses the perpetual inventory system): Sold $3,000 of merchandise Permalink -- click for full blog post " Journal Entry for Credit Card Sales Transaction " Cash Flow Statement Question & MemoQ: Could you please provide a question on cash flow statement and a memo? A: Thomas, try this cash flow statement exercise. Permalink -- click for full blog post " Cash Flow Statement Question & Memo " FIFO, LIFO & Weighted Average Cost ExerciseQ: Using FIFO, LIFO, and weighted average, what is the ending cost of inventory? Permalink -- click for full blog post " FIFO, LIFO & Weighted Average Cost Exercise " Preparation of Balance SheetQ: What is meant by preparing a balance sheet for management accounts? Permalink -- click for full blog post " Preparation of Balance Sheet " Accrued Expense QuestionQ: At this stage when the owner has to pay the bill, what will happen to the asset side, will it not decrease by 200? If not, why? Permalink -- click for full blog post " Accrued Expense Question " Cash Flow Statement ExercisePlease note that in the following question Rs = Rupees = Indian currency. Also figures are written in Indian style. Rs 1,00,000 (Indian figure) = 100,000 Permalink -- click for full blog post " Cash Flow Statement Exercise " Provision for Bad Debts, Sales Control Account1) Why is the provision for bad debts not entered in the sales ledger control account? 2) And what is the reasons for keeping control accounts? Permalink -- click for full blog post " Provision for Bad Debts, Sales Control Account " Income Balancing Amount QuestionQ: You are given the following figures: - Beginning capital of 200,000 - Ending capital of 190,000 - Additional investment 30,000 and - Personal withdrawal Permalink -- click for full blog post " Income Balancing Amount Question " Journal Entries Accrual Items QuestionQ: I want to know how do you make the following journal entries: 1. Outstanding expense - rs 3,000 2. Accrued interest - rs 4,000 3. An amount of rs 1,000 Permalink -- click for full blog post " Journal Entries Accrual Items Question " Accounting Journals: Gift And ShipmentQ: What are the journal entries for the following: 1) Received gift of Rs 51,000 from father-in-law by check, which is deposited into business bank account. Permalink -- click for full blog post " Accounting Journals: Gift And Shipment " Total of Bank in the Cash Receipts Journal?Q: How do you find what the total amount of the bank column is in the cash receipts journal? Permalink -- click for full blog post " Total of Bank in the Cash Receipts Journal? " Creditors Allowances QuestionQ: Where does the creditors allowances go? Permalink -- click for full blog post " Creditors Allowances Question " Balance Sheet Equation ExerciseQ: Compute the amount for the items indicated by letters, A, B, C, D and E and show the supporting computations: Revenues $145 Expenses Permalink -- click for full blog post " Balance Sheet Equation Exercise " Unearned RevenueQ: Is unearned revenue a current liability? Permalink -- click for full blog post " Unearned Revenue " Three Versions in BookkeepingQ: Why do we need balance sheets, a trial balance AND profit and loss? Permalink -- click for full blog post " Three Versions in Bookkeeping " Assets, Capital and DrawingsQ: In conclusion, is it true that capital and drawings affect the assets? Permalink -- click for full blog post " Assets, Capital and Drawings " How are LIFO Purchase Returns Handled?Q: How are LIFO Purchase returns handled? Permalink -- click for full blog post " How are LIFO Purchase Returns Handled? " Accounting ExamsHere are some accounting exams you can use to test your knowledge of bookkeeping as well as financial and managerial accounting. Permalink -- click for full blog post "Accounting Exams" Accounting QuestionsTry these accounting questions and exercises and succeed in accounting! Permalink -- click for full blog post "Accounting Questions" Value of Closing Stock QuestionQ: Opening stock 80,000, purchases 160,000, sales 200,000. Gross profit 33%. Goods destroyed by fire 30,000. Received claim of 20,000. What is the value Permalink -- click for full blog post " Value of Closing Stock Question " Recording of Inventories DonatedQ: How do we record inventories when donated in the periodic inventory method? Permalink -- click for full blog post " Recording of Inventories Donated " Adjusting Entry Preparation Manufacturing Business#1) How to prepare a journal entry for the transactions related to inventories of raw material, goods in process, & finished goods? #2) How to prepare Permalink -- click for full blog post " Adjusting Entry Preparation Manufacturing Business " Accrued Expenses and RevenueQ: Does accrued expenses and revenue need to be closed at the end of the accounting period? Permalink -- click for full blog post " Accrued Expenses and Revenue " Stock Taking And SecurityQ: I wanna know how to prepare a stock taking and security report for a school project. In particular how to enter agreements with suppliers, authorization Permalink -- click for full blog post " Stock Taking And Security " Trade DiscountQ: Purchased merchandise on credit for R500 subject to trade discount of 20%... What journals must I use? A: DR: Purchases R400 CR Creditors R400. That's Permalink -- click for full blog post " Trade Discount " Overcast in Returns Inward JournalQ: The accountant of Golly Ltd ascertained that the returns inwards journal had been overcast by R100. Which ledger account will be affected by this error? Permalink -- click for full blog post " Overcast in Returns Inward Journal " Calculating Value of Closing WIP (Manufacturing Costs Question)Q: Given the direct materials as $714,000, direct labour as $400,000, variable overheads as $100,000 and fixed overheads as $350,000. 90,000 units were Advantages of FIFO and LIFO MethodsQ: What are the advantages of the FIFO and LIFO methods? Permalink -- click for full blog post " Advantages of FIFO and LIFO Methods " Trial Balance Major ErrorsQ: What are the major errors located by the trial balance? Permalink -- click for full blog post " Trial Balance Major Errors " WHAT MY DIRECTOR EXPECTS TO SEE ON FINANCIAL SPREADSHEETGood morning! My director of finance asked me to create a spreadsheet showing how the business is doing on a weekly base. I created a s-sheet with these Permalink -- click for full blog post " WHAT MY DIRECTOR EXPECTS TO SEE ON FINANCIAL SPREADSHEET " How to reconcile Gross ProfitQ: How do you reconcile the Gross Profit of Perpetual Inventory & Periodic Inventory Systems? Permalink -- click for full blog post " How to reconcile Gross Profit " Manufacturing Business - Trial BalanceQ1: What do you include in a manufacturing business' trial balance? Q2: What do you do when the trial balance doesn't balance? Q3: Are expenses in the Permalink -- click for full blog post " Manufacturing Business - Trial Balance " Journal EntriesJan 1 Shayam commenced with cash 15,000. Jan 10 Returned goods to Krishna 350. Permalink -- click for full blog post " Journal Entries " Trial Balance ErrorsQ: What are some errors not affecting the trial balance? Permalink -- click for full blog post " Trial Balance Errors " Sales Return Under the LIFO MethodQ: What will the entry be if there is a sales return under the LIFO method Permalink -- click for full blog post " Sales Return Under the LIFO Method " Journal Entry QuestionQ: What's the entries for the following: 1 - Business started with cash 8,000 and plant & machinery 3,000. 2 - Stock purchase for sale (cash purchase)= Permalink -- click for full blog post " Journal Entry Question " Cash BookQ: What is the cash book? Permalink -- click for full blog post " Cash Book " Accounting Cycle for a Manual SystemBriefly explain the different stages of the accounting cycle for a manual system compared to the accounting cycle for a computerized system Permalink -- click for full blog post " Accounting Cycle for a Manual System " New! CommentsHave your say about what you just read! Leave me a comment in the box below. |
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