TDS on Salary Journal Entry Tax Deducted at Source (TDS) is a system of taxation wherein a certain percentage of tax is deducted from the salary of an employee. Key Takeaways TDS on Salary is a system of taxation where a certain percentage of tax is deducted from an employee’s salary. The journal entry for …
Sold Furniture Journal Entry Furniture Furniture is classified as a long-term asset and typically has a depreciation period of five to ten years. Furniture and fixtures are movable items that are used to furnish an office, such as bookcases, chairs, desks, filing cabinets, and tables. These items are recorded on an organization’s balance sheet as …
Paid Electricity Journal Entry Key Takeaways Accurate recording of the payment is crucial for budgeting and ensuring financial records are up to date. The payment is reflected in the company’s financial statements, allowing investors and interested parties to assess the company’s spending on utilities. The journal entry for recording the payment involves debiting the utility …
Cheque Deposit Journal Entry A cheque deposit is a common financial transaction used by individuals and businesses to transfer funds from one account to another. It is a convenient and secure way to move money from a sender to a receiver. Cheque Deposit Depositing a cheque is a common method for adding funds to a …
Purchased Building Journal Entry Purchased Building The purchased building was acquired in order to increase property holdings. It is an older two-story building located in a high-traffic area. It was purchased for a discounted rate due to its age and condition. The building has been renovated to bring it up to code and make it …
Installation of Machinery Journal Entry The installation of machinery is a significant financial transaction for any business that requires a considerable amount of capital. The accounting treatment of the costs associated with the installation of machinery requires a careful analysis to determine whether the costs should be capitalized or expensed. Installation of Machinery Installing machinery …
Cheque Dishonoured Journal Entry Cheque Dishonoured A cheque can be considered dishonoured if it is not honoured by the bank when the payee attempts to deposit it. The payer is the one who issues the cheque to the payee in order to pay for goods or services. The payee then attempts to deposit the cheque …
Old Newspaper Sold Journal Entry Old Newspaper Sold The sale of old newspapers results in the recognition of income in the nominal account of Old Newspaper Income. This account is used to record the income earned from selling old newspapers and does not appear in the balance sheet. This income is then recorded in the …
What is Contra Entry? Contra entry is a transaction in which two accounts are affected simultaneously. This type of transaction is used in accounting to adjust the balance of two or more accounts at the same time. It is important to understand the concept of contra-entry and its examples in order to maintain accurate accounting …
Bad Debts Recovered Journal Entry Bad Debt The ability to recover bad debt can be a challenge for businesses due to the complexity of the situation. Bad debt is a customer’s unpaid receivable resulting from a company extending credit to a customer who cannot repay the debt. It can be caused by a variety of …