The ledger postings for accounts receivable and accounts payable can be done with the help of the double column cash book entries.Refer the data given below −DateDescriptionPRVNDiscount($)Cash($)DateDescriptionPRVNDiscount($)Cash($)Sep 1balance b/d6000Sep 5K & Co A/c106153600Sep 3D &Co110122500Sep 7purchases126850Sep 9Income (interest)122200Sep 12Machinery1203800Sep 15Sales1287800Sep 17Stationary expenses105500Sep 28D & Co11025650Sep 20Office furniture107620Sep 30Sales1248000Sep 23K &Co10625870Sep 30salary1091800Sep ... Read More

Refer the data given below −TransactionsFeb 1          Cash balance                                                               $120000Feb 1         ... Read More

In double column cash books, there will be two cash columns on both the credit side and debit side. One column records the cash transactions and the other column records bank transactions.Single column cash books will become double column cash books, if we add bank transaction column to single column ... Read More

Refer the data given below to prepare a bank account in a ledger with a single column cashbook −DATEPARTICULARSVNLF$DATEPARTICULARSVNLF$2010Balance b/d700002010Mar 1Customer(Beingcheque A/creceived)20000Mar 1Bank A/c(Beingcheque deposited)22000Mar 5Bank A/c(Being amount withdrawn)25000Mar 12Purchases(Being goods bought for cash)47000Mar 9Sales A/C(Beinggoods sold for cash)35000Mar 24Bank A/c (Beingcash deposited)17500Mar 20Sales A/c(Beinggoods sold for cash)38000Mar 31Salary A/c(Beingsalary paid)14000Mar 31Balance ... Read More

Let us understand how to make the respective entries in the single column cash book with the help of the given data.May 1 Cash in hand $50000May 1 Bank balance $160000May 4 Received a cheque from a customer “A” of $18000May 5 Deposited customer “A” cheque in Bank.May 8 Cash ... Read More

This is the final step in the accounting cycle. Reversing entries are made at the start of an accounting period to reverse the adjusting journal entries made at the end of the previous period.These are made because of last year’s accruals. Also, the prepayments which will be paid during the ... Read More

A finance institution has loan portfolio and the respective details are as given below −Loan portfolio (%)31-12-15Rate to calculate (%)On schedule5286914Loan in arrearsFor first 30 days2851472Next 30 days17582322Next 30 days7525922Next 90 days6523153Next 180 days46327100360 days up25423100SolutionCalculations of provisions are as follows −Loan portfolio31-12-15Rate to calculate (%)On schedule528691400For first 30 days28514725702.94Next ... Read More

Following steps are followed while making entries in ledger account −Opening balance and closing balance in cash books are not posted in ledger accounts.Debit side entries of the cash book are posted in relevant accounts on the credit side in the ledger.Credit side entries of the cash book are posted ... Read More

Single column cash book is a T shaped cash book. It is called a single column cash book because; it has only a money column on both credit and debit sides and records cash transactions.It is divided into two parts having debit on the left hand side and credit on ... Read More

There is a lawsuit between company A and company B. Company A sued company B in violating patent rights of technology. Company A claimed $ 3 billion, when the lawsuit began in 2010 but in the final verdict in 2016, company A won $ 400 million. (Company B estimated contingent ... Read More