Sold Machinery for Cash Journal Entry Sold Machinery for Cash Selling machinery for cash can provide a business with liquid capital to invest in new, replacement equipment. This can be a beneficial option for businesses that need to update their machinery in order to remain competitive. Machinery is an important asset that helps to increase …
Outstanding Expense Journal Entry Outstanding expenses are expenses that have been incurred but have not yet been paid. They occur when the company has taken the benefit of the expense but has not yet made the payment. A common example is rent that is due but has not been paid. Outstanding expenses can also include …
Interest on Capital Journal Entry Interest on capital is a return on investment for business owners. It is the fixed interest paid to investors for the amount they have agreed to invest in a business. It is the interest on share capital, and investors receive this interest for the amount they have decided to invest. …
Sundry Debtors Journal Entry What are Sundry Debtors? Sundry debtors refer to a group of individuals or entities that owe money to a business for goods or services sold on credit. This group is various individuals or entities combined under one category and arises from core business activities such as sales of goods or services. …
Purchase Goods With Cash Journal Entry Purchase Goods The purchase of goods is recorded under the ‘Purchases A/c’. Goods are tangible items that are acquired and sold by a business. They can be bought and sold for money or credit. When goods are purchased with cash, the business records the transaction in the Purchases A/c …
Discount Received Journal Entry Discount received Discounts received are recorded as a reduction to Accounts Receivable on a company’s balance sheet. This can be a useful tool for suppliers and customers, as discounts can be used to incentivize larger purchases or reward loyalty. Discounts can also be given as a way to get rid of …
Purchase Furniture Journal Entry Purchase furniture Purchasing furniture requires a journal entry to record the transaction in the books of accounts. Whether the entity is buying furniture for resale or for interior design, the purchase must be classified as either inventory or fixed assets. For furniture purchases, the journal entry involves a debit to the …
Started Business With Cash Starting a business with cash requires the evaluation of the current capital needs of the business and the various options available for sourcing the necessary funds. Cash is one of the most common sources of capital for businesses, as it provides immediate access to funds and can be used to cover …
Bank Charges Journal Entry Bank charges are fees that are imposed by financial institutions for various activities such as account set-up, maintenance, and minor transactions. These fees are typically used to generate revenue for the bank and can be charged one-time or on an ongoing basis. Many of these fees are negotiable, and it is …
Cash in Hand Journal Entry Cash is a measure of the amount of cash that is readily available for use in a business. It includes actual cash, bank accounts, and liquid assets that can be easily converted into cash. The amount of cash on hand may vary depending on the size of the business, its …