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#??
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