In simple words, such assets have a short life span, which can be easily converted into cash during an accounting period. Fixed or long-term assets are convertible to cash but not as quickly as current assets. Tangible assets are the opposite of intangible assets which do not take a physical form and have a theorized […]
As an independent line item, each expense is reported separately. In most cases, salary is an indirect expense shown in the profit & loss account. Our team researched and compiled a list of the most commonly seen indirect expenses. “Direct”, as the word suggests, are those expenses directly related and assigned to the primary …
Within a general ledger, transactional data is organized into assets, liabilities, revenues, expenses, and owner’s equity. After each sub-ledger has been closed out, the accountant prepares the trial balance. This data from the trial balance is then used to create the company’s financial statements, such as its balance sheet, …
Here, you can download and use simple accounting journal templates to record your company’s transactions. As informed, they are parts of integrated accounting system template where in that template you can see generated report based on journal entries. Also, you can see their respective account summary in general ledger worksheet …
He estimates that out of this $280,000, approximately 2% will prove to be bad debt in 2015. Since the recovery is a gain for the business, it is credited to the “Bad Debts Recovered A/c”. Bad debt is a loss for the business, and it is transferred to the income statement to adjust against the […]
This entry records the gross wages earned by employees, as well as all withholdings from their pay, and any additional taxes owed to the government by the company. Salary is an indirect expense incurred by every organization with employees. It is paid as a consideration for the efforts undertaken by the employees for the business. […]