Archive about 'Bookkeeping to Trial Balance'

In Accounting, what are credit entries and also explain what does an entry on the CREDIT SIDE means. Is Credit side and Credit Balance the same?

Credit Entries:
Credit entries are the entries found on the right-hand side of any ledger account.
An entry on the CREDIT side indicates:-

A decrease in ASSETS;
A decrease in EXPENSES
An increase in LIABILITIES
An increase in REVENUE or
An increase in CAPITAL

 
The credit side and credit balance is not the same.
Unlike credit entries, a credit balance on an account indicates [...]

Explain The Difference Between Journal And Ledger

Difference Between Journal And Ledger

Journal

Ledger

Journal is the book of prime entry where the transactions are first recorded and then to the ledger ( 1 stage)
Compared to Journal, the ledger is recorded after the journal ( the 2 nd stage)

Journalizing [...]

Explain what is a dishonored cheque and how it is being treated in the books of account?

Explain what is a dishonored cheque and how it is being treated in the books of account?

Suggested Answer:
Dishonored Cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque which will then [...]

Define What Is Discount Allowed And Discount Received .

Explain the terms: discount allowed and discount received. In accounting, how are they treated in the books of account?

Suggested Answer:
Discount allowed are given to the CUSTOMERS of a company so as to induce them who are owing money to settle in a time specified by [...]

Answers To Questions on True Or False On Subsidiary Books

Answer to Question on Subsidiary Books

True

False

1.0

Total of Return Inward Register is credited to Return Inwards Account

X

2.0

The sale of an old car is recorded in the Sales Register

X

3.0

Credit Note is the basis for making entry in the Purchase Returns Book

X

4.0

The Sales Register is a [...]

Questions(With Answers) On True Or False For Subsidiary Books

QUESTIONS [  click here for ANSWER ]

True

False

1.0

Total of Return Inward Register is credited to Return Inwards Account

2.0

The sale of an old car is recorded in the Sales Register

3.0

Credit Note is the basis for making entry in the Purchase Returns Book

4.0

The [...]

Steps To Balance The Trial Balance

I was preparing the Trial Balance and it could not balance. Can you please tell me the steps to balance it.?

In the event that your trial balance doesn’t balance, go through the following bookkeeping tips/steps in the suggested order to ensure that the error can be detected [...]

The Different Types Of Journals Or Books Of Prime or Original Entry Shown In The Accounting Cycle

Journal is also called the Book Of Prime Or Original Entry.
 
The purposes of Journal are as follows:
 

Records in one place the complete effects of a transaction
Provides a chronological record of transaction
Helps to prevent or locate errors because the debit and credit amounts  for each entry could be readily compared

 
 
The Standard form and Content of journal [...]

What is The Accounting Cycle And The Steps Involved

Accounting Cycle is a series of accounting process which begins with the identification of an economic activity or transaction, recording of the economic activity and ends with the prepration of the financial statements. The Accounting Cycle is a repeated process where one cycle ends and another cycle (as above) is repeated again
The steps involve in [...]

Trial Balance

Definition Or What is A Trial Balance

A list/statement/worksheet of all the account balances of the general ledger at a particular point in time from which the Income Statement and Balance Sheet of a business is drawn up.

It is prepared in each financial period as a summary of the closing of the previous ledger which [...]