Basic Points Of Accounting [ Part 3 ]

Basic Points Of Accounting [ Part 3 ]

Written By : Sakin17

Preview :

1. 6 The Kinds of Adjusting Journal Entry 

1. Prepaid expenses ( expenses are deferred )
2. Prepaid Income ( Incomes are deferred )
3. Accrual Income 
4. Expenses liabilities 
5. Depreciation expenses
6. And so on

Every entries will always affect balance accounts and nominal accounts at once.

1.7 Closing Entries

Lets Continue Our Discussion About Accounting Basics ^-^

1. 7 Entries Closing Journal / Closing Entries

1. Move balance of incomes to the Income Summary 
2. Move balance of expense accounts to the income summary 
3. Move balance of the income summary to the capital account 
4. Move balance of the withdrawal account  to the capital account

1. 8 Specialized  Journal 

1. Give the services on credit : Be Recorded in the Income Journal ( Sales Journal )
2.  Receive cash from any source : be recorded in the cash receipt journal 
3. Buy some goods on credit : be recorded in the purchase journal 
4. Spend cash for payments : be recorded in the cash payment journal

1.9 Terms Of Delivery 

............* To Be Continued [ Part 4 ]