Hi, Please see the account structure I intend to use. Also please see if I am posting transactions correctly. I am just in a bit of doubt. Please help see and confirm. Thanks
Can we all confirm on the following points:- *ACCOUNT STRUCTURE * Balance Sheet ---Assets : Cash, Account Receivables, Supplies, Equipments ---Liability : Notes Payable, Account Payable, Wage Payable, Unearned_Revenue ---Equity : Common Stock, Retained Earnings, Income Statement ---Revenue : Service Revenue , Investment Revenue ---Expenses : Wage Expenses, Rent, Depreciation Expenses etc. *TRANSACTION SAMPLES * TRANSACTION 1 Dec 1 2014 - Joe starts his business by making a personal investment of $20,000 in in his firm in exchange for 5,000.00 common stock. Cash account is increased from 0 to $20,000.00 Also there is an increase stock holders equity account of Common Stock to $20,000.00. Assets:Cash $20,000.00 Equity:Common Stock TRANSACTION 2 Joe purchases a a vehicle using cash by writing a cheque of $14,000.00 2 accounts involved here are Cash and Vehicle Assets:Cash Assets:Vehicle $14,000.00 TRANSACTION 3 Joe contacts an insurance agent regarding insurance coverage. The agent informs $1,200.00 will provide insurance for 6 months(each month $200). Assets:Cash Assets:Prepaid_Insurance $1,200.00 Each month it will go as follows:- Assets:Prepaid_Insurance Expenses:Insurance $200.00 TRANSACTION 4 Customer pays Joe $10 for 2 deliveries for that day against invoice#001. Assets:Cash $10.00 Revenue:Service_Revenue:Sales:Invoice#001 TRANSACTION 5 Lets say Joe gets a big order and needs to deliver 50 parcels immediately for $250. He hires a helper to deliver the parcel. The customer tells Joe to submit an invoice of $250.00 and he will pay it in 7 days. Since Joe delivers 50 parcels, he has earned $250.00 Assets:Account_Receivables:Invoice#002 $250.00 Revenue:Service_Revenue:Inv#?? Do we mention on the Service_Revenue the order Number? or on the Unserviced_Revenue? TRANSACTION 6 For sake of simplicity Lets say the only expense was the Temporary Helper. The temporary helper fee is $80 and is due by Dec 2nd. Expenses:Temporary_Helper $80.00 Liability:Account_Payable:Helper:Inv#?? -- --- 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.
