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Various Types of Transactions – Collection from Sales or Services Rendered (Part 3)

For profit orientated entities, revenue is the “bloodline” of the businesses. The cash collected from invoicing or billing is vital in keeping the businesses up and running – meeting all sorts of daily expenses. Depending on the nature of the businesses, the sales invoices or bills issued to customers are for the sale of [...]

Various Types of Transactions – Contribution of Capital from Owners (Part 2)

When owners inject cash into businesses as capital, the double entry to record this type of transactions is: -

Balance Sheet

Income Statement

DR

CR

DR

CR

Petty cash/cash at bank

XXXX

Capital

XXXX

Cash injections could be done by way of contributing “hard cash”. If this is the case, the asset account [...]