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 October 5th, 2017 by Team
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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 July 25th, 2017 by Team
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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.

Last modified May 16th, 2017 by Team
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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.

Last modified May 9th, 2017 by Team
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Accrued and Deferred Income and Expenditure Journals

The accrued and deferred income and expenditure journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of accrual and deferral transactions.

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

Last modified May 9th, 2017 by Team
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Accruals and Deferrals

Accrual and deferral journal entries are posted to ensure that revenue and expenditure are included in financial statements on an accruals not a cash basis.

Last modified September 18th, 2017 by Team
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Adjusting Entries Examples

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

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

Last modified March 23rd, 2017 by Team
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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.

Last modified June 19th, 2018 by Team
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