Explain the principle of recording a credit sale transaction in the accounting system?
819511
with pleasure:\n\nyou book: Debitor/Sales Revenue\n\nWhen the client pays you book:\n\nBank/Debitor\n\nthat is all there is to it!\ngood luck..cya
289067
Items placed on your credit report will remain for 7 years, from the time they are reported to the agency.  After that they must be removed.\n\nADDITIONAL COMMENTS\n          DUCK joieanew!!!!\n\nKnowledge of the law is our only weapon!   \n     I AM ARMED!!!!\n\nI totally disagree with your statement below.  If I am incorrect, please do me a favor and point out where in the law you are referring to.\n\nFirst, the Statute of Limitations has nothing to do with the reporting length on your credit report.  It applies to the legal obligation you have to collect a debt.  Once the SOL has run out, you can not sue, nor does the debtor have a legal obligation to pay.  \n\nYou do, however still have the right to collect the debt, and to report the debt with the collection agencies.  \n\nBelow is the requirements from the Fair Credit Reporting Act.\n\n=====================\n\n§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]\n\n(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:\n\n    (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)\n     \n(c) Running of reporting period.\n\n    (1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.\n\n================\nNow, as I read this, I see no clause that restarts the clock if you make a payment on your debt after it has gone to collections.  \n\nYour reply would be appreciated.\n\nAm I wrong?  What am I missing?
841753
we show accrued expense when we r not able to make our payment, lets say a Rent on time and need to make adjusments to pay the yr 1995 rent in yr 1996, thus we c/d the balance and thus make an entry in the rent account of accrued c/d.\n\nAnd accounts payable is a credit entry and while balancing off the balance sheet we make this entry.
932668
A bought ledger account is created, called (say) Petty Cash.\nI then use a duplicate book to record petty cash expenditure. At the end of a page, or expiry of the float, the page is torn out, stapled to vouchers and processed as a supplier invoice. The 'supplier' is paid by drawing a cash cheque to reimburse the imprest system.\nThis method avoids having to journal pc directly to the general ledger and creates a natural home (paid invoice file) for pc vouchers.
819437
For a trading account you need to show the results of trading ( ie buying and selling of goods ) in order to ascertain the gross profit  or gross loss of your business.\nNow this means you need to use only those transcations which are directly connected with goods.\n\n\nA profit&loss account is prepared after the trading account and it ascertains the net profit and loss for a particular period .\nThe net profit is the surplous you have in your hands after charging against gross profit all the expenses including depreciation and other provisions attributed to normal activities of a business (general expenses).\n\nDeferred payments when related to sales of goods for filing in the trading account is debited . The person who has to give you money is the debtor.\nAnd it is his liability and your asset , \nItll always be added to the debit column\n\nPrepaid items are your liability as you have to provide the customer with your service and is added to the credit column as its an advance payment.\nLast year's debt that just turned bad is added to debit column in the P&L account.\n\nI hope you this is of help to you.\n\nHave a nice day.\n\n:)
203877
The agreement between merchant (the store) and the credit card processing company.I\n\nf the store wants easier (faster) processing, they can elect to have a higher "Signature" amount, but will increase their risk level by being responsible for that amount if it is disputed.\n\nZero risk would be to require a signature for all transactions, but would take a little longer.  So if the store has a lot of business, they may ellect to "bypass" the signature.
1181447
accural accounting will show that you are recognizing the expense and paying it when it is due. Take for example employee's pay. Your pay period runs sunday to sunday. Your quarter ends on a Wednesday. This must be recognized in your journal and ledger as it won't be on the employee's check. It must be explained so you will use accural accounting.\ncash accounting is like sales with cash when something is sold something is paid for. Record sales journalize then post.\nfor financial statements use accrual accounting as there will be areas that run beyond the fiscal period yet have to adhere to the GAAP
553292
Use a T account. \n\nDebits\n   March Credit Sales  $28,000\n   April Credit Sales   20,000\n   May Credit Sales    24,000\n\nCredits  \n   Mar sales collected in march  (8,400) \n   Mar Sales collected in april  (18,200)\n   Mar Sales write off in april  (1,400)\n\n   April Sales collected in april(6,000)\n   April Sales collected in may  (13,000)\n   April Sales write off in may  (1,000) \n\n   May Sales collected in may   (7,200)\n  \n   BALANCE AS AT MAY 31       $16,800\n\nEach month debit the account with 80% of the month's sales. (these will be your credit sales)\n\nEach month credit the account with 30% of the month's credit sales, 65% of the previous month credit sales and write off 5% of the credit sales of the previous month.
28878
It's a complex algorithm that is kept private by the 3 major credit reporting agencies. But generally speaking, the biggest factors are:\n\n- paying bills on time (positive points)\n- the size of your accounts, the larger ones like mortgages are good, the smaller ones like Target are bad \n- how frequently creditors look into your report (negative points)\n- whether or not you have any judgements or bankruptcies (negative points)\n- keeping your balances below half of the limit (positive points)\n- the frequency of using your cards (if you don't use your credit cards over a long period of time, your score goes down)\n- last, but not least: you need to have at least a few accounts open, but not too many\n\nHope that helps.
37391
Are you using an accounting software package?  Your question suggests that you are.  If so, there is actually an account type for credit cards.  You need to create a new account for that card.  You will also need to set the credit card company up as a vendor.\n\nCharges to the credit card would initially be booked either to an expense account or a capital account.  Then when you start paying off the card, you book everything other than the interest expense to the credit card account.
50291
Journal is also called as Book of Prime Entry.. where the first record of an accounting transaction is made..\n\nBooks of Prime entry mean Subsidiary Books or Sub-journals. In large organisations journal is divided into number of books like purchase book, sales book, cash book etc... these are all journals i.e. books of prime entry.  By dividing journals in this way, an organisation can save its money, time and labour.\nThis site has a wonderful explanation on the basics of accounting. Please be patient enough to read through. http://www.futureaccountant.com/accounting-process/study-notes/\n\n\n\n\nhttp://www.futureaccountant.com/\nhttp://www.schoolingkids.com
293589
Normally and the most simplest way (I think) would be to debit value received and credit value given up.  For example, if you buy office furnitures for your business and pay it in cash, the entry would be\n\ndr.  Office furnitures\ncr.  Cash\n\nbecause you received the furnitures and you gave up cash.
914491
If I understand this question, you, the company, is paying the creditor the money.  In this case, it would be a decrease to Cash (the asset) listed as a credit, and a decrease to a liability, such as accounts payable, listed as a debit.  In other words, these would the the journal entries:\n                           Debit                Credit\nCash                  1800\n      Accounts Payable                 1800
535963
hi josejen, this is a wonderful question that need deep knowledge in tax and accounting. First u need to know that there are 2 kinds of accounting one cash system and other accruel system. In cash system matter is simple. just debit the tax you paid and credit the cash/ bank as and when you paid it. Please note that you cannot claim a deduction on this behalf from income tax.\n Now when you are following accruel system you have two options. One just acount the calculated tax as a liability, hence debit income tax and credit income tax payable. deibit the liability a/c and credit bank/ cash when you are payig it. \nBut if you are followin accounting standards to account tax matter is too complicate. you need to calculate what is a .......if you want know more ...please contact me
432269
If it has been over 7 years and they have not sold it to another company it is off, but if they keep sending it to different credit collectors it stays open until they stop doing that. Each time one of them buys it, than it is open to go back on your credit report...Lady
332196
its the :\n- sales ledger + sales day book\n- purchase ledger + purchase day book\n- invoice\n- assets accounts\n- p/l a/c\n- balance sheet\n- vender account\n- bank book\n- cash book
677208
Broadly, accounting is defined as the systematic recording, reporting, and analysis of financial transactions of a business. \n\nThere are different types of accounting, namely: Financial Accounting, Tax Accounting, Cost Accounting and Managerial Accounting.\n\nFINANCIAL ACCOUNTING is defined as “measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. \n\nFinancial statements (financial data) tell us (1) the financial position of an entity at a certain date and (2) the results of its operations (profit/loss) and the changes in its financial position and variations in stockholder's equity (investment) in a period of time. (Historical information/past events).\n\nFinancial accounting aims at satisfying the interest of the "general user" which may include: shareholders, government agencies, creditors, and the general public.\n\nMANAGERIAL ACCOUNTING. Measures and reports financial and non-financial information that helps MANAGERS make decisions to fulfill the goals of an organization. It focuses on internal reporting. \n\nCOST ACCOUNTING is an information system that classifies, accumulates, controls and assigns costs to determine costs of activities, processess or products, facilitating decision making and managerial planning and control.\n\nCost accounting plays a role in both managerial and financial accounting. Some authors describe Cost Accounting as a unifying point between Managerial and Financial Accounting.\n\nTAX ACCOUNTING is used to communicate information to the appropriate taxing authorities. Generally, the Internal Revenue Service and state tax or revenue boards. It includes the procedures for determining taxes payable and compliance with other provisions of tax laws.\n\nHope this helps...