Business Accounting Blog

Your first step would be to prepare all the financial data necessary for the calculation. If you have a Trial balance at hand, then you are all set. Otherwise, have all your business bank transactions on hand. You will also need to have a record of t…

The basic formula of the accounting equation can be seen below. …

What is unearned revenue on the company’s Balance sheet? Unearned revenue is considered a company’s liability because it received payment from a customer in advance and still needs to earn it. If the company for some reason does not fulfill its oblig…

The amounts of debit and credit turnover, as well as debit and credit balances for all accounts in General Ledger, must be equal, respectively. Accounts in the general ledger help to estimate the company’s expenses….

Contra asset accounts can include the following accounts:…

It is useful to work with the contra revenue account in the following situations:…

The company offers three services:…

An account post is usually done through a strict procedure that follows the creation of a journal entry from details of a particular transaction. Note that this is considered as the third step in the accounting cycle….

In royalties, the owner is not selling full legal ownership of the asset, but simply the right to manufacture it. If the rights to ownership of a property are sold, that would be called capital expenditure. This is how the two differ. There are actua…

Accrual and deferral pertain to both expenses and revenue that are recorded based on the actual time period they were settled. Accruals are those payables or receivables that are also earned or incurred but not yet received or unpaid to set the demar…