The only entries that will be made in the fixed asset account will be in respect of fresh purchases or sales of the asset concerned. The balance in depreciation expense account is transferred to the profit and loss account at the end of the year. The adjusting entry for a depreciation expense involves debiting depreciation […]
This means putting in a little legwork and trying to collect past due invoices before the new year. Use your balance sheet at year-end to ensure your accounts balance and everything is in order for the new year. If you find a discrepancy, make sure you find the accounting mistake and fix it. Cash flow […]
Usually, a General Ledger has Subsidiary Ledgers, which contain the respective details of the account. For instance, an accounts receivable General Ledger will have Subsidiary Ledgers that contain information about the amount that each customer owes. A General Ledger for Inventory will contain Subsidiary Ledgers that will show the breakdown …
Direct costs are often variable costs, meaning they fluctuate with production levels such as inventory. However, some costs, such as indirect costs are more difficult to assign to a specific product. Examples of indirect costs include depreciation and administrative expenses. You also need to know the difference between direct and indirect …
He is the sole author of all the materials on AccountingCoach.com. Your general ledger tells the bank the financial information they need to move forward with a loan application. The general ledger lets you see a complete financial snapshot and that nothing is out of balance in your books. The trial balance is a report […]
When an asset loses value by an annual percentage, it is known as Declining Balance Depreciation. Depreciation schedules can range from simple straight-line to accelerated or per-unit measures. If all other sites open fine, then please contact the administrator of this website with the following information. Just upload your form 16, claim …