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...
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...
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...
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 ...
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 ...
It is easier to understand the basic principles and concepts of accounting once you are familiar with the types of transactions that a typical business entity has to deal with. There is no better place to start with knowing what kind of receipts a typical busi...