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Overview of Rent Paid in Advance Rent paid in advance means the payment of any rent obligation prior to the rental period in which it is due. It is an example of prepaid expense. Since the prepaid rent does not relate to the current accounting period, it is recorded on the asset side of the […]

Overview of Sales Return When the customer returns the goods purchased back to the seller, the transaction is referred to as a sales return. It is also known as Return Inwards. The buyer may return the goods to the seller due to excessive purchases, defective goods, or any such reason. For recording this transaction, adjustments […]

-This question was submitted by a user and answered by a volunteer of our choice. Return Outwards In layman’s language, return outwards refers to the goods returned by the customer to the supplier (or) manufacturer due to various issues found in the goods (say- quality, defects, or damages). Return outwards is also known as purchase […]

Overview of Sales Ledger Control Account A sales Ledger Control Account (SLCA) is a summarized ledger of all the trade debtors of the entity. This Control Account typically looks like a “T-account” or a replica of an Individual Trade Receivable (Debtor) account. But instead of containing transactions of invoices, returns, and receipts, etc related to […]

As a small business owner, there is no doubt you are very mindful of the money being spent. Small businesses don’t always have a lot of excess cash flow, and expenses need to make sense for the company. Trying to save the company money could be one of the reasons why you’ve been doing your […]

Traditional lending is generally a long and drawn-out process, as most borrowers can relate to. Completing all required documentation and going through approval processes within a financial institution could take weeks or even months. The stringent requirements often leave out small borrowers who don’t have collateral, a good credit score, or the income stream required […]

What are adjustments in accounting? It all starts mainly with the accrual concept of accounting, which says that all incomes earned and expenses incurred during an accounting period should be recorded whether or not money has exchanged hands or not. This is the primary reason for the need for adjustments in final accounts. Why are […]

Journal Entry for Salary Paid Salary is an indirect expense incurred by every organization with employees. It is paid as a consideration for the efforts undertaken by the employees for the business. Salary expense is recorded in the books of accounts with a journal entry for salary paid. Salary is among the most recurring transactions […]

Journal Entry for Rent Received If a business owns a property that is not being used then it may decide to rent it out and collect periodical payments as rent. Such a receipt is often treated as an indirect income and recorded in the books with a journal entry for rent received. This adds an […]

In recent years, there has been a shift when it comes to the use of digital payments. Reuters highlights how the use of digital wallets and payments has been steadily rising since 2017. Today, these alternative payment options are now being used by billions of consumers from all over the globe. Because of its success, more […]

Paid Rent Journal Entry If a business does not own an office premise it may decide to hire a property and make periodical payments as rent. Such a cost is treated as an indirect expense and recorded in the books with a journal entry for rent paid. The party receiving the rent may book a […]

Journal Entry for Advance Received from a Customer In certain types of business transactions, it is a requirement for the customer to pay a part of the total amount or the entire sum in advance, for example – security deposit to rent a property, customized items, bulk orders, insurance premium, etc. As a result, journal […]

  We store our funds in different places, whether it be banks, financial platforms, currency exchanges or stock markets. In today’s age of globalization, we can easily use platforms from other countries. Therefore, we start moving our money between different countries and make frequent international transactions. It generates high transaction fees, which can quickly affect […]

Different Types of Business Investors The idea of being your own boss is so exciting, but the point where this idea seems like crashing is when you think about money to kick-start your startup. Unless you are born into a millionaire family, or you have served on a higher post for a multinational company, it […]

Procedure to Put Your Business on Facebook You know by now that Facebook is one of the most active social media platforms. With almost two billion active monthly users, it has great potential to turn into a jackpot platform for your business if you hit it right on point. Now, Facebook is no more an […]