Royalties in Accounting

Royalty accounts are used to record royalties paid by a licensee to a licensor for the use of a long term asset owned by the licensor.

Royalties in Accounting April 19th, 2017Team
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Bills Receivable in Accounting

When a business sells goods to a customer on credit terms is might draw up bill of exchange setting out the amount due and the date on which the amount must be paid. The amounts outstanding under these bills of exchange are referred to as bills receivable.

Bills Receivable in Accounting April 3rd, 2017Team
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Bills Payable in Balance Sheet

Bills payable are liabilities due under bills of exchange accepted by a business. The term is sometimes more generally used to refer to accounts payable.

Bills Payable in Balance Sheet April 3rd, 2017Team
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Bills of Exchange in Accounting

Bills of exchange can be used when credit terms are offered by a business to a customer. The bill is a transferable document which when accepted, indicates agreement by the buyer that the amount of the bill is payable on a particular date.

Bills of Exchange in Accounting April 3rd, 2017Team
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Balancing off Accounts

Part of the accounting cycle is to produce a trial balance, in order to do this it is necessary to balance off the ledger accounts at the end of each accounting period.

Balancing off Accounts February 23rd, 2017Team
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Capital Receipts vs Revenue Receipts

Capital receipts are those which are normally non-recurring and either increase a liability account or decrease an asset account. Revenue receipts are usually recurring and are part of the normal trading operations of the business, such as the sale of goods and services.

Capital Receipts vs Revenue Receipts February 8th, 2017Team
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Accounting Internal Controls

Internal controls in accounting are used to reduce the risk of fraud and error in the bookkeeping and accounting system. The level of internal controls used will depend on the nature and size of the business involved.

Accounting Internal Controls January 6th, 2017Team
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Supplier Statement Reconciliation

A supplier reconciliation sometimes referred to a vendor reconciliation is used to ensure that all supplier invoices, credit notes, and payments have been recorded correctly in the accounts payable ledger.

Supplier Statement Reconciliation December 12th, 2016Team
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Accounts Payable Control Account

The accounts payable control account is an account in the general ledger which maintains summary postings relating to accounts payables. The account, which is sometimes referred to as the purchases ledger control account, is used to allow the detail of supplier transactions to be kept in a separate subsidiary personal account ledger which is not part of the double entry bookkeeping system.

Accounts Payable Control Account December 1st, 2016Team
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Accounts Receivable Control Account

The accounts receivable control account is an account in the general ledger which maintains summary postings relating to accounts receivables. The account, which is sometimes referred to as the sales ledger control account, is used to allow the detail of customer transactions to be kept in a separate subsidiary personal account ledger which is not part of the double entry bookkeeping system.

Accounts Receivable Control Account December 7th, 2016Team
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