Tag: accounting

Various Types of Transactions – Part 5, Disbursement or Release of Principal Sum of Loans or Borrowings from Third Parties

Business entities may apply for loans or borrow money from third parties (usually financial institutions; sometimes in the form of short term loans or advances from owners, directors & etc.). THIS IS NOT A SOURCE OF REVENUE OR OTHER INCOME. This is because...

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More On Books of Original Entry – Cash Book

Cash Book is used to record cash transactions. However, due to the fact that there is a difference between cheques and the “hard cash”, normally these two types of transactions are recorded in two separate Books of Original Entry – Cheques transactions i...

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General Ledger? Journals? Day Books? Debtors Ledger? Creditors Ledger? Trial Balance?

Not sure about these? In my previous post on “ Accounting Documents & Accounting Cycles “, I have discussed the commonly used accounting documents (function is record occurrence of transactions) and also examples of accounting cycles (Sales, P...

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Accounting Documents & Accounting Cycles

It is important that you know the type of documents commonly used to record the occurrence of transactions (Can you think of any examples?). Some of them are:- Official receipts Normally you will get these when you make payment over the counter to the cashier ...

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Various Types of Transactions – Collection from Other Source of Revenue and Income (Part 4)

As mentioned in my post: Various Types of Transactions – Part 1, Introduction, there were 5 examples of other source of revenue or income highlighted – interest income, dividend income, rental income, proceeds from disposal of assets and compensation r...

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Various Types of Transactions – Collection from Other Source of Revenue and Income, Compensation Received for Loss of Assets (Part 4e)

Business entities may encounter some unfortunate events such as fire, flood or others that cause damage to their assets. After assessment of the damages caused, the insurance companies will then pay the relevant compensation to these business entities. If the ...

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