There are many differences between trade and cash discounts. A trade discount is used to encourage more sales whereas a cash discount is used to encourage prompt payment of invoices.
Last modified November 19th, 2019
Bookkeeping Basics
Quiz 64: Normal Balance Side Quiz
Normal Balance of Accounts
Unbalanced Trial Balance Errors
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.
Last modified November 8th, 2019
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.
Last modified June 7th, 2022
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.
Last modified December 16th, 2019
Quiz 63: Cash Book Receipt or Payment
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.
Last modified August 3rd, 2020
Accrual to Cash Conversion Excel Worksheet
Accrual to Cash Conversion
