Take our debits and credits in accounting quiz to check out your knowledge of accounting and double entry bookkeeping.
Last modified December 6th, 2019
Bookkeeping Basics
Quiz 21: Basics of Bookkeeping Quiz
Purchase Order Template
Irrevocable Letter of Credit
A letter of irrevocable credit or irrevocable lc, is one which cannot be revoked or amended by the buyer without agreement from the seller. A letter of credit is a mechanism a seller can use to reduce risk and facilitate payment for international trade. A letter of credit works by substituting the credit of a bank for that of a buyer, it is basically a guarantee to the seller that the buyers bank will make payment.
Last modified July 16th, 2019
What is a Contra Revenue Account?
Contra means against. In bookkeeping terms, a contra revenue account refers to an account which is offset against a revenue account.
As a revenue account is normally a credit balance, a contra revenue account will normally be a debit balance. When the two balances are offset against each other they show the net balance of both accounts.
Last modified January 27th, 2023
Accounting Source Documents
One of the fundamental accounting concepts is the verifiable and objective evidence concept which states that financial transactions should have adequate documentary evidence.
Accounting source documents are a form of documentary evidence which provide detailed written proof of financial transactions including for example, a description of the nature of the transaction, the date, the amounts involved, and the various parties to the transaction.
There are many types of accounting source documents which have evolved over time to suit different accounting and bookkeeping situations. The main and most common accounting source documents are as follows:
Last modified March 12th, 2020
Bookkeeping Cycle
The bookkeeping cycle is a series of steps showing the process required for a typical small business to record its financial transactions for an accounting period. The cycle will vary from business to business but the general steps to explain the process remain the same.
The bookkeeping cycle diagram used in this tutorial is available for download in PDF format by following the link below.
Last modified March 31st, 2023
Quiz 19: Debit and Credit Entries Quiz
Subsidiary Ledgers in Accounting
When a business has only a small number of accounting transactions then the double entry bookkeeping postings can all be maintained in a single ledger know as the general ledger. As the business expands the number of transactions and accounting staff increases and it becomes impractical to maintain one ledger due to its large size, and the problems of access to the ledger by multiple staff. The solution is to sub-divide the ledger.
Last modified July 16th, 2019
Simple Bookkeeping Spreadsheet
Keeping bookkeeping records is a requirement for any small business. It is crucial that records are kept in good order and that financial information is prepared on time and easily understood. This small business book keeping spreadsheet can be used to record receipts and payments transactions and produce a summary of receipts and payments at the end of each accounting period.
Last modified July 16th, 2024
Quiz 18: Debit Credit Accounting Quiz
General Ledger Sheet Template
The general ledger, sometimes called the nominal ledger, is one of the books of prime entry in a double entry accounting system. A trial balance extracted from the general ledger can be used to prepare the financial statements of the business.
Each account in the general ledger has its own sheet (or multiple sheets) on which transactions relating to that account are recorded.
This general ledger sheet template includes seven columns, date, description, reference, transaction debit and credit, and balance debit and credit, and can be used to create a ledger sheet for each account in the double entry bookkeeping system.
Last modified August 2nd, 2023