Understand the basic of the different type of Organization Structure- Sole Proprietor ( Part 1 of 3)
In bookkeeping, a bookkeeper needs to at least understand the type of organization structure that one is going to help to prepare the books of accounts. Below, we describe the three types of organization structure listed with characteristics/key features, advantages and disadvantages of having such structure: (a) Sole Trade or Sole Proprietor ( Part 1 [...]
Double entry bookkeeping is the method used to transfer our weekly or monthly totals from our books of original entry into the nominal ledger. Basic rule to remember is that:- EVERY FINANCAL TRANSACTION gives RISE TO TWO ACCOUNTING ENTRIES, ONE A DEBIT AND THE OTHER A CREDIT. Also note that: (a) An increase in an [...]
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Question No.1:- State which books of original entry the following transactions would be entered into: (a) ABC pays you $100 (b) You return goods to AB to the value of $100 (c) Customer AC returns goods to the value of $150 (d) You pay Jim $500 (e) You receive an invoice from A for $120 [...]
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Refer earlier article on the importance or role of source documents. Some of the main data sources and records in an accounting system comprise: • Sales Order • Purchase Order • Invoice • Credit note • Debit note • Goods received note The different function or role of each source document as follows: Sales order [...]
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