Accounting tutorial

Good morning everyone!Kindly click on the link to open accounting lessons on topic: books of first entry 👇👇👇 https://drive.google.com/file/d/17tpvgUQbA-r0jd5oNBHIK5uLJlazphe_/view?usp=drivesdk Good luck!!

The accounting equation is the cornerstone of the entire accounting system. It represents the fundamental relationship between a company's assets, liabilities, and equity.  Every financial transaction, no matter how simple or complex, is recorded using this equation. Understanding the accounting equation is crucial for anyone involved in financial management, from business owners to accountants and financial analysts. The accounting equation is typically expressed as: Assets = Liabilities + Equity Liabilities = Assets - Equity  Equity = Assets - Liabilities  This equation must always balance, meaning that the value of a company's assets is always equal to the sum of its liabilities and equity. Let's break down each component: 1. Assets: These are resources owned by the company that have economic value and can be converted into cash. Examples include cash, accounts receivable, inventory, equipment, and real estate. Assets represent what a company owns. 2. Liabilities : T...

  What is a Wages Journal? A wages journal is a subsidiary ledger used to record all payroll-related transactions. This includes gross wages, deductions, net wages, and employer contributions to taxes or benefits. The wages journal serves as a detailed account of all payments made to employees over a specific period, usually aligned with the payroll cycle—weekly, bi-weekly, or monthly. Why is the Wages Journal Important? 1. Accurate Payroll Tracking:The wages journal provides a detailed record of all payroll transactions, ensuring that each payment and deduction is accurately tracked. This accuracy is essential not only for financial reporting but also for maintaining employee trust. 2. Compliance with Regulations:Payroll is subject to various laws and regulations, including tax laws, minimum wage requirements, and labor laws. The wages journal helps ensure that your business complies with these regulations by maintaining detailed records of all payroll activities. 3. Financial Rep...

The general journal is a fundamental accounting tool, often referred to as the "book of original entry." It is where businesses record their financial transactions in chronological order before they are posted to the general ledger. Uses of the General Journal The general journal is essential for recording non-recurring, complex, and infrequent transactions that do not fit neatly into specialized journals, such as cash receipts or sales journals. Common uses include: 1. Adjusting Entries: At the end of an accounting period, entries are made to ensure that revenues and expenses are recorded in the correct period.     2. Correcting Entries: If an error is discovered in a previously recorded transaction, a correcting entry is made in the general journal to rectify it.     3. Closing Entries: At the end of the fiscal year, the general journal is used to close temporary accounts, transferring their balances to permanent accounts like retained earnings.     4. D...

 In this lesson, we will learn  about Creditors returns journal. Purchases returns is when the business returns goods to the supplier.  Also called returns outwards What is Creditors returns journal? Is a book of first entry used for Purchases returns( when our business returns goods). It is also used for the following; It provides the total purchases returns amount for the month  It reduces the number of entries in the purchases returns account  It provides the purchases returns figure needed to draw up a control accounts  For inventory control purpose  Format of Creditors returns journal  Click on the link to see recording transactions in the Creditors returned journal 👇👇 https://youtu.be/_xnX_rPZMtc?feature=shared

 We have two types of returns in the business, which  are: sales returns journal and purchases returns journal but today we will learn about sales returns journal. Sales returns is when the customer returns goods to the business. Also called returns inwards  What is Debtors returns journal? Is a book of first entry used for sales returns( when customers returns goods) This journal also has other uses:  It provides the total sales returns amount for the month.  It reduces the number of entries in the sales returns account  It provides the sales returns figure needed to draw up control accounts. For inventory control purpose. Format of Debtors returned journal Click on the link to see recording transactions in the Debtors returns journal  https://youtu.be/g5TBUx8867U Good luck!!