Dear John, Thanks for your feedback. I meant to add a negative value on the bottom value. I want to get more feedbacks from people on this group. Thanks for your input.
Which is correct:- A. Liability:Unearned Revenue $100 Revenue:Serviced Revenue $-100 B. Revenue:Serviced Revenue $100 ;this is where the money goes to Liability:Unearned Revenue $-100 ; this is where the money is from Please advise if I am thinking correctly. On Friday, May 8, 2015 at 9:14:38 PM UTC+7, John West wrote: > > 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] > <javascript:>> 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] <javascript:>. >> 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.
