Bookkeeping

As an individual consumer, you will most likely encounter a debit memo as a bank transaction. If you incur a fee through your bank, like for printing checks or an overdraft, the bank will debit your account directly to cover that fee. This will show up on your bank statement as a transaction, labeled as […]

It helps businesses plan their cash flow and ensures they have enough cash to cover their expenses. This is particularly important during times of crisis, when businesses may experience cash flow disruptions. The production budget is a plan for the number of new products or services a business aims to manufacture. Step 3: Create a

Maybe it’s because you bought them a drink or did a favor for them. Your friend is probably not keeping track of the favors they owe you, at least not on paper, but you’ll remember that they have a liability to return your favor. A contingency is an existing condition or situation that’s uncertain as

The customer unwittingly gave me $96 for the purchase, an error we both failed to catch. The accounting system will show $95 in posted sales but $96 of collected cash. The journal entry for this sale would debit cash for $96, credit sales for $95, and credit cash over short for $1. At the end