Record the journal entry, if necessary.?
Don't know what accounting rules you are working with, but typically, a government grant is not recorded until received. The reason for this change in recognition is that there is no guarantee the grant will be received. A grant is a voluntary disbursement from the government, and technically, it could choose to not pay the grant. To be conservative, you would make a note in the financial statements but you would not record the amount until received.
What is the importance of journal entries?
The word journal has been derived from the French word "Jour" Jour means day. So, journal means daily. Transactions are recorded daily in journal and hence it has named so. As soon as a transaction takes place its debit and credit aspects are analyzed and first of all recorded chronologically (in the order of their occurrence) in a book together with its short description. This book is known as journal.The following are the importance of journal:-Each transaction is recorded as soon as it takes place. So there is no possibility of any transaction being omitted from the books of account.Since the transactions are kept recorded in journal chronologically with narration, it can be easily ascertained when and why a transaction has taken place.For each and every transaction which of the two concerned accounts will be debited and which account credited, are clearly written in journal. So, there is no possibility of committing any mistake in writing the ledger.Since all the details of transactions are recorded in journal, it is not necessary to repeat them in ledger. As a result ledger is kept tidy and brief.Journal shows the complete story of a transaction in one entry.Any mistake in ledger can be easily detected with the help of journal.
What is journal entry and what is the trick to make a journal entry?
Journal entry is recorded in Journal of businessman to give 2 effects in Double Entry . It is basic of All books of Accounts.TricksAsk 3 QuestionWhat ? Means what is in transaction i.e goods,machinery..etcHow? How you purchsed,sold,given, received etcIf answer comes in cash then,Entry:Cash A/c and any thing answer in no.1 point comes (i.e what ) like purchase,sale,machinery? EtcIf any answer come credit then ask next question3. To whom? Here answer comes creditor. Or name of creditor or debtor etc.By the way you have learn 3 golden rules of Accounting.1.personal A/c- Debit thereceiver and credit the giver.2.Real A/c-Debit what comes in and Credit what goes out.3.Nominal A/c-Debit all expenses and losses and Credit all incomes and gains.
What is the journal entry of received cash from customers not previously billed?
It’s very common for some professionals, like lawyer, painters, and other contractors to require customers (clients) pay them some money upfront in advance of their doing any work. This way, if a customer were to refuse to pay, they’re not the whole amount. Instead, they received some money in advance.The proper way to record this would be to:Debit CashCredit Unearned RevenueThe unearned revenue account is a liability! Why? It’ because you have a legal obligation to perform the service for which you’ve been paid. So the customer is paying you in advance of your performing any work.At the end of the accounting period, you’d make an adjustment for any work that you’ve actually done. And revenue would move from being unearned to being earned. So as I explain to my accounting students, revenue can be EARNED or it can be UNearned.
Accounting Journal Entries?
If they paid you the $10 up front, on January 1, 2010, the entry would be: Debit Cash $10 Credit Unearned Revenue $10 (this is a liability account - you won't convert the liability to revenue until the work is completed in December 2010) If they did not pay you up front, then no journal entry is necessary at January 1, 2010 when the contract is signed.
Prepare the adjusting journal entries that Austin Clinic must record as a result of preparing the bank reconci?
a. Outstanding checks as of June 30 total $2,700. 2,700 is subtracted from the bank balance. No journal entry necessary. b. The June 30 bank statement included a $65 debit memorandum for bank services. $65 should be subtracted from the company's cash balance. Dr Bank Fees 65 Cr Cash 65 c. Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill on June 15. Austin Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $498. $9 should be added to the company's cash account. Dr Cash 9 Cr Utilities Expense 9 d. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement $2,933 should be added to the bank bank statement balance. No journal entry necessary. The bank statement and company cash account should now balance at 15,615.
What is the journal entry for payment? And why?
For instance,Electricity bill ₹7000 paid in cashThe journal entry would beElectricity bill a/c dr ₹7000To cash a/c ₹7000Electricity a/c is debited because it is expense and nominal a/cCash is real a/c and goes out of business so creditedEvery payment is debited because as per the rule of nominal a/c expense is debitedAnd cash a/c is credited because payment is made in cash and cash goes out of businessIf cheque payment is made then bank is credited because bank will be giver
Journal Entry Help!! Accounting question?
(a) Cash to be accounted for exceeds cash on hand by $57.71. Cash to be accounted for is $7,545.22. That means cash on hand is short by $57.71. Dr Cash $7,487.51 Dr Cash over and short $57.71 Cr Sales $7,545.22 (b) Cash on hand exceeds cash to be accounted for by $44.88. That means you have a cash overage of $44.88 Dr Cash $7,590.10 Cr Sales $7,545.22 Cr Cash over and short $44.88
How do we know which journal entry will pass in which voucher in Tally?
For that first you should know the nature of vouchers in Tally,Below listed are the commonly used vouchers in Tally‡ Contra Voucher (F4)‡ Payment Voucher (F5)‡ Receipt Voucher (F6)‡ Journal Voucher (F7)‡ Sales Voucher /Invoice (F8)‡ Credit Note Voucher (CTRL+ F8)‡ Purchase Voucher (F9)‡ Debit Note Voucher (CTRL+ F9)CONTRA ( F4) : Accounting Voucher in Tally.ERP 9. This Voucher is used for fund transfers between Cash and Bank accounts only. Like Fund transfer from one Bank / Cash account to another Bank / Cash account, Cash Deposit / Withdrawals into/from Bank.PAYMENT VOUCHER (F5) : is taken to explain these two features used for Cheque Management. 1. Go to Gateway of Tally > Accounting Vouchers. ... Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12: Configure.RECEIPT VOUCHER (F6) : We use receipt when someone pay us a certain some of money towards the consideration of sale, service or any other repayment & Payments like loan ,advances etc. In such cases we issue a printed receipt as an acknowledgment of money receipt. Receipt is a legal document that we received cash, cheque from other party.JOURNAL VOUCHER (F7) : Journal entries in tally is NOT used for recording ALL KINDS transactions.Generally transactions recorded through journal voucher in tally erp9 does not include cash or Bank account, Adjusting journal entries: – The use of adjusting entry is to get accurate financial result of a company. For example Outstanding Exp, Prepaid Exp. etc.SALES VOUCHER (F8) : Entry of sales is done in tally in two ways:- *As Voucher – It means that bill is not prepared in tally package. The sale bill is made either made manually or in some other software. The accountant prepares the voucher with the help of sales bill then he enters the voucher tally accounting software.*As Invoice – It means that invoice is to be generated in tally software and no separate voucher is to be prepared for the same.PURCHASE VOUCHER (F9) : You can use this voucher to make all entries which is related to credit and cash purchases in tally software. Note: During purchase voucher entries you have to change the mode of this voucher by Pressing CTRL + V key, voucher entry to invoice mode and invoice to voucher entry mod as per requirement. To this shortcut key you have to active following option by pressing F11-> F1-> Set Allow Invoicing Option – YesThank You,