Capital and Revenue Expenditure

Capital expenditures and revenue expenditures are treated differently in accounting. Capital expenditure relates to expenditure on non-current assets, whereas revenue expenditure is expenditure relating to the day to day trading activities of the business.

Capital and Revenue Expenditure February 7th, 2017Team
Read more

Excel SLN Function

The Excel SLN function is one of many Excel financial functions, and can be used to calculate the straight line depreciation of a long term asset. It has the syntax SLN (cost, salvage, life).

Excel SLN Function November 6th, 2016Team
Read more

Basket Purchase Allocation

A business will often purchase a number of long term assets for a single combined purchase price. In order to record the assets in the accounting records and to allow depreciation to be correctly calculated, the basket purchase price needs to be allocated in proportion to the fair market value of the assets.

Basket Purchase Allocation November 6th, 2016Team
Read more

Buy Equipment with Down Payment in Cash

A business buys networking equipment to the value of 12,000 and funds the purchase with a down payment in cash of 3,000 and the balance on credit terms form the supplier of the equipment.

The double entry bookkeeping is recorded using this equipment purchase compound journal entry.

Buy Equipment with Down Payment in Cash November 6th, 2016Team
Read more

Fixed Assets Journal Entries

The fixed assets journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of fixed assets.

In each case the journal entries show the debit and credit account together with a brief narrative.

Fixed Assets Journal Entries February 16th, 2017Team
Read more

Disposal of Fixed Assets – What are the Journal Entries?

When a business has a disposal of fixed assets, the original cost and the accumulated depreciation to the date of disposal relating to those fixed assets must be removed from the accounting records. A disposal of fixed assets can occur when the asset is scrapped and written off, sold for a profit to give a gain on disposal, or sold for a loss to give a loss on disposal.

Disposal of Fixed Assets – What are the Journal Entries? November 6th, 2016Team
Read more

Fixed Assets Basics

Fixed assets have a long life and are for use within the business and not held for resale. They are not part of the trading stock, and are not involved in the day to day working capital cycle of the business so are not readily convertible into cash.

Fixed Assets Basics November 6th, 2016Team
Read more