Kategorija: Bookkeeping

This second journal entry would include a debit to Sales and a credit to Accounts Receivable. You’ll notice that the sales notebook only lists credit sales for inventories and products. As the debt owed has now been paid, we need to clear the £500 debit that was posted when the purchase was initially made. As

Bad debt to sales ratio refers to the percentage of your company’s bad or doubtful debts in regard to sales. It’s essential to look into this ratio to assess and improve your collections. It can be used to establish your collection risk management policy, important for making smart strategic decisions. What Are the Challenges of

All of our content is based on objective analysis, and the opinions are our own. This can result in abnormal losses as well and unexpected expenses being incurred. The AI assistant not only provides the numerical output directly in the spreadsheet but also explains the calculation process through its interactive chat interface. This dual-display capability

Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. A SIP calculator is a tool that helps you determine the returns you can avail when parking your funds in such investment tools. Systematic Investment Plan or

These financial key ratios are extremely useful for management decision making and stakeholders understanding. They are easy to interpret as well as calculate, making them very a very important tool for company evaluation. The management, investors, analysts, etc can use analysis of financial ratios for measuring profitability, efficiency, solvency and financial position. The price-to-sales (P/S) ratio

This means when a piece of equipment is purchased an expense isn’t immediately recorded. Since the machine is exclusively used for business activities to produce taxable supplies, the business can claim ITC on the ₹3,60,000 GST paid. This credit helps reduce the company’s future GST liability on sales. There are different methods of depreciation that

Without any hiccups or last-minute scrambles, you’ll be able to enter tax season confidently. The double-entry system of bookkeeping is common in accounting software programs like QuickBooks. With this method, bookkeepers record transactions under expense or income. Then they create a second entry to classify the transaction on the appropriate account. Bookkeeping is the process

Whether analyzing company performance, securing investments, or ensuring tax compliance, understanding Income Statements in Finance and Accounting is crucial for effective financial management. Let’s explore how income statements work and their significance in business accounting. At the end of the accounting period, all fees will be closed by transferring the debit to the income summary

Over five general ledger accounts years, just 18 per cent of your total return comes from share price growth, with dividends making up the rest. In the long run, it is the compounding effect of reinvesting dividends that really makes you rich. Say you invested £100 (Dh590.82) in the UK stock market way back in

We will use the same figures from the absorption and variable product cost post. The best contribution margin is 100%, so the closer the contribution margin is to 100%, the better. The higher the number, the better a company is at covering its overhead costs with money on hand. How Do You Calculate Contribution Margin?