There may be a significant gap in how I, as a total amateur, would do this versus someone familiar with the Generally Accepted Accounting Principals.
In ledger, I might represent the system like this at the start: Assets:Cash $600 Liability:Unearned Revenue $-600 Then, every month: Liability:Unearned Revenue $100 Revenue:Serviced Revenue $-100 After six months, you'd have $600 in Assets:Cash, $0 in Liability:Unearned Revenue, and $-600 in Revenue:Serviced Revenue. That will maybe look a little strange, but in ledger I expect all of my Income or Revenue accounts to be negative numbers. I hope this helps! It took me a long time to come to grips with this, since I too am self-taught. I have the luxury of not doing this for business, though, and only doing it to track my personal finances. On Fri, May 8, 2015 at 4:56 AM, Kev Lau <[email protected]> wrote: > Hi Steffan, > Yes. You are right. It does seem strange. I have put 1 example below. > Please see and advise how would you write this in your ledger. > > Hi Rick, > See below. > Thats a chart I am trying to follow > > Balance Sheet > Assets : Cash, Account Recievables, Supplies, Equipments, > Cost_of_Goods > Liability : Notes Payable, Account Payable, Wage Payable, > UnEarnedRevenue > Equity : Common Stock, Retained Earnings, > Income Statement > Revenue : Service Revenue , Investment Revenue > Expenses : Wage Expenses, Rent, Depreciation Expenses etc. > > Example of UnearnedRevenue: > So for example the cash advance of 6 months (without making any delivery) > he will have a cash reciept of 600 but no revenue. > He only earns his revenue (by making delivery) > It will be: > Assets:Cash $600 but also in his Liability there will be $600 which will > be Liability:UnEarnedRevenue $600 > Each month he delivers there will be a addition into the Serviced Revenue > account. > Which will show the income statement to increase by $100 . > > Wouldnt this entry above look like this in ledger:- > > Assets:Cash $600 > Liability:UnearnedRevenue $600 > > Or how would you write this into your ledger. I am most likely doing to > wrong. > > > > On Thursday, May 7, 2015 at 4:52:16 PM UTC+7, Kev Lau wrote: > >> Hi, >> I am still having difficulties with coming up with a proper mean of using >> a ledger for my business. I am hoping that someone here could see my Ledger >> and tell me if it looks sound. I don't want to make alot of entries and >> later realize I have been doing it wrong. I have read some material on >> accounting and feel that I understand how to make entries(but not sure how >> well I am organized and structured) >> >> Below is a sample of my hypothetical testing ledger. If you could have a >> look and give me some advise/tips I would deeply appreciate it. >> >> >> >> #GENERAL_ELECTRIC:ASSETS:CASH:CITIBANK US$-12,998.06 ;cash >> recd, debit to cash acct. >> #GENERAL_ELECTRIC:LIABILITIES:ACCOUNT_PAYABLE:VENTURE_ENTERPRISE US$ >> 12,998.06 >> >> #GENERAL_ELECTRIC:EXPENSES:BANK:CITBANK:FEES US$-19.35 ;cash paid >> out credit to cash acct. >> #GENERAL_ELECTRIC:EXPENSES:BANK:CITIBANK:FEES US$-77.41 ;cash paid >> out credit to cash acct. >> #GENERAL_ELECTRIC:ASSETS:BANK:CASH >> >> #GENERAL_ELECTRIC:ASSETS:CASH:CITIBANK US$-4,998.06 >> #GENERAL_ELECTRIC:LIABILITIES:ACCOUNT_PAYABLE:VENTURE-ENTERPRISE US$ >> 4,998.06 >> >> #GENERAL_ELECTRIC:EXPENSES:BANK:CITIBANK:FEES US$-34.19 >> #GENERAL_ELECTRIC:EXPENSES:COST_OF_GOODS_SOLD:TRIA_SOLAR:INV004 >> US$-12,000.00 >> #GENERAL_ELECTRIC:EXPENSES:BANK:CITIBANK:FEES US$-34.19 >> #GENERAL_ELECTRIC:EXPENSES:COST_OF_GOODS_SOLD:DYNO_WORKS:INV004 >> US$-3,808.00 >> #GENERAL_ELECTRIC:ASSETS:CASH:CITIBANK >> >> #GENERAL_ELECTRIC:REVENUE:SALES:MICROSOFT:INV004 >> US$6,000.00 >> #GENERAL_ELECTRIC:ASSETS:RECEIVABLES:INV004 >> US$-6,000.00 >> >> >> -- > > --- > You received this message because you are subscribed to the Google Groups > "Ledger" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > -- --- You received this message because you are subscribed to the Google Groups "Ledger" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
