Normal Balance of Accounts

In double entry bookkeeping each account has a normal balance. The normal balance for items on the left hand side of the equation is a debit and the normal balance for items on the right hand side of the equation is a credit.

Normal Balance of Accounts April 5th, 2018Team
Read more

Unbalanced Trial Balance Errors

A trial balance will not balance if there are errors in the double entry bookkeeping system, To help find and correct the unbalanced trial balance a number of different shortcut techniques can be applied.

Unbalanced Trial Balance Errors December 7th, 2017Team
Read more

Bank Transaction Journal Entries

The bank transaction journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of banking transactions. In each case the journal entries show the debit and credit account together with a brief narrative.

Bank Transaction Journal Entries November 17th, 2017Team
Read more

Currency Forward Contract – Imports

When a business undertakes import trade with overseas suppliers and makes payment in a foreign currency it needs to try and protect itself from fluctuations in the currency exchange rate. One method of achieving this is to buy the foreign currency using a currency forward contract.

Currency Forward Contract – Imports October 6th, 2017Team
Read more

Foreign Exchange Forward Contract Accounting

When a business undertakes export trade with overseas customers and receives payment in a foreign currency it needs to try and protect itself from fluctuations in the exchange rate. One method of achieving this is to sell the foreign currency using a foreign exchange forward contract.

Foreign Exchange Forward Contract Accounting October 5th, 2017Team
Read more

Foreign Currency Transaction Bookkeeping

When a business trades overseas either importing from suppliers or exporting to customers, the transactions are normally conducted in a foreign currency. Since the business reports in a different currency it must reflect any exchange gain or loss when accounting for foreign currency transactions.

Foreign Currency Transaction Bookkeeping July 25th, 2017Team
Read more

Accrual to Cash Conversion

The accruals and cash basis of accounting are two different methods of preparing financial statements. A business can calculate information relating to cash receipts and payments from it’s accrual based accounting system using accrual to cash conversion formulas.

Accrual to Cash Conversion May 16th, 2017Team
Read more

Cash to Accrual Conversion

The cash and accruals basis of accounting are two different methods of preparing financial statements. The conversion from cash basis to accrual basis can be carried out using cash to accrual conversion formulas.

Cash to Accrual Conversion May 9th, 2017Team
Read more

You May Also Like