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Adjusting entries are accounting journal entries that are to be made at the end of an accounting period. Adjusting entries are made to ensure that income and expenditure is allocated to the correct accounting period, this means that the accounting records are completed on an accruals basis and are in compliance with the matching principle.
Contra means against. In bookkeeping terms, a contra asset account refers to an account which is offset against an asset account.
As an asset account is normally a debit balance, a contra asset account will normally be a credit balance. When the two balances are offset against each other they show the net balance of both accounts.
All expense claim transactions need to be supported by a expense claim form.
Together with attached invoices, receipts, and other paperwork, an expense claim form is used to support payments made to employees for general business expenses such as office supplies and stationary, travel, mileage, business entertainment, etc.
Journal Entries are used to record transactions in the Journal.
Most accounting transactions pass through what is called a book of prime entry before they reach the general ledger. Books of prime entry include for example the cash book, purchases day-book, and sales day-book.
There are however entries which do not go through a book of prime entry which are recorded in the Journal using Journal Entries.
When you set out to start a business as an entrepreneur you need to be in control of your finances and be able to track the performance of the business. The only way to achieve this is to have good understanding of basic double entry bookkeeping and accounting information.