Tag: Tutorials

capital improvements journal entry

Capital Improvements After Asset Acquisition

Accounting distinguishes between capital improvements and repairs and maintenance to an asset. A capital improvement is treated as a capital cost and included on the balance sheet of the business, whereas repairs and maintenance are treated as expenses and included in the income statement for the year.

Last modified January 7th, 2020 by Michael Brown
Read more
deferred tax liability accounting

Deferred Tax Liability Accounting

Deferred tax liabilities are shown as long term liabilities on the balance sheet of a business, and represent obligations to pay income tax at some point in the future arising from temporary timing differences.

Last modified January 7th, 2020 by Michael Brown
Read more
accrual to cash conversion

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 January 13th, 2020 by Michael Brown
Read more
cash to accrual conversion

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 November 11th, 2019 by Michael Brown
Read more
revenue accruals and deferrals

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 November 11th, 2019 by Michael Brown
Read more
royalties in accounting

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.

Last modified August 3rd, 2020 by Michael Brown
Read more
bills receivable accounting

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.

Last modified October 31st, 2022 by Michael Brown
Read more
bills of exchange

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.

Last modified July 16th, 2019 by Michael Brown
Read more
balancing off accounts

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 December 17th, 2019 by Michael Brown
Read more
capital receipts vs revenue receipts

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.

Last modified December 17th, 2019 by Michael Brown
Read more

You May Also Like