Tag: Tutorials

accounting internal controls

Accounting Internal Controls

Internal controls in accounting are used to reduce the risk of fraud and error in the bookkeeping and accounting system. The level of internal controls used will depend on the nature and size of the business involved.

Last modified December 17th, 2019 by Michael Brown
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supplier statement reconciliation

Supplier Statement Reconciliation

A supplier reconciliation sometimes referred to a vendor reconciliation is used to ensure that all supplier invoices, credit notes, and payments have been recorded correctly in the accounts payable ledger.

Last modified December 17th, 2019 by Michael Brown
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accounts payable control accounts

Accounts Payable Control Account

The accounts payable control account is an account in the general ledger which maintains summary postings relating to accounts payables. The account, which is sometimes referred to as the purchases ledger control account, is used to allow the detail of supplier transactions to be kept in a separate subsidiary personal account ledger which is not part of the double entry bookkeeping system.

Last modified December 9th, 2019 by Michael Brown
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accounts receivable control account

Accounts Receivable Control Account

The accounts receivable control account is an account in the general ledger which maintains summary postings relating to accounts receivables. The account, which is sometimes referred to as the sales ledger control account, is used to allow the detail of customer transactions to be kept in a separate subsidiary personal account ledger which is not part of the double entry bookkeeping system.

Last modified July 16th, 2019 by Michael Brown
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contra expense account

Contra Expense Account

Contra means against. In bookkeeping terms, a contra expense account refers to an account which is offset against an expense account.

As an expense account is normally a debit balance, a contra expense account will normally be a credit balance. When the two balances are offset against each other they show the net balance of both accounts.

Last modified December 17th, 2019 by Michael Brown
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cost allocation

Cost Apportionment of General Overhead

Cost apportionment is the process of distributing general overheads to cost centers or departments. An appropriate base quantity such as floor area or kilowatt hours is used to calculate the apportioned overhead.

Last modified August 3rd, 2020 by Michael Brown
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carriage inwards and carriage outwards

Carriage Inwards and Carriage Outwards

Carriage inward and carriage outward, sometimes referred to as freight inwards and freight outwards, are transportation costs incurred by a business. Freight inwards relates to costs incurred in having goods delivered to the business from suppliers, whereas freight outwards refers to the costs of delivering goods to customers.

Last modified October 7th, 2022 by Michael Brown
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capital and revenue expenditure

Capital and Revenue Expenditure

Capital expenditures and revenue expenditures are treated differently in accounting. Capital expenditure relates to expenditure on non-current assets, whereas revenue expenditure is expenditure relating to the day to day trading activities of the business.

Last modified January 7th, 2020 by Michael Brown
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sales tax accounting

Sales Tax in Accounting

Sales tax is charged as a percentage of the selling price of goods and services. It is an indirect tax levied by the tax authorities and is ultimately paid by the end consumer of a product.

Last modified November 2nd, 2022 by Michael Brown
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