Questions tagged [accounting]

for questions that relate to the laws, practices, and products of accounting. Please note that questions about accounting that are academic or have no bearing on personal finance are off-topic here.

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2answers
819 views

Link bank transactions for credit card payments in GnuCash?

Using GnuCash. I download activity from my bank and from my credit card. I've imported my bank activity and that will have entries such as Date | Description | Withdrawal 1/1/2017 | ...
4
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1answer
160 views

What tax year does my income get assigned to if my client sends the payment in December but I receive it in January?

Suppose I did some contracting in December, my client puts a check in the mail in December, and I receive it and cash it in January. Does my income count for December or January?
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1answer
1k views

What is the field “Folio” in an accounting book for? [closed]

I am not sure is this a right place to ask this question here. I am currently running my own business, and using a traditional accounting book to record all the debited and credited amounts. I don't ...
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2answers
125 views

Credit and Debit [closed]

I often get confused between debit and credit accounts for example. Capital To Start Up Your Business , the two accounts being affected are bank and owner's equity ( if I'm correct that's why it's ...
3
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1answer
539 views

Buying car as S-corp

I have an S-corporation and I will be buying a car under it today. There are somethings I am unsure about it which I would like to confirm. Do I pay for all the costs of the car out of my business ...
3
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1answer
9k views

Meaning of “Non-trading Item” and “Capital Item”

I'm reading the income statement of a company, and the column describing profit is titled Profit from operations before non-trading and capital items. So, my question is a two-parter: What is a non-...
5
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1answer
1k views

How do I do double-entry bookkeeping for separately-managed investment accounts?

Double-entry bookkeeping is new to me but is something I'm trying to apply to our personal finances. The area I am struggling with is how to deal with our investments. We have a mix of Canadian RRSP ...
2
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1answer
179 views

Recording of personal property contribution to S-Corp in QuickBooks

I began an S-Corp, and I contributed a truck, computers, and furniture. How do I record these items in QuickBooks? What accounts do I use?
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2answers
633 views

GNUCash: How to count up equity?

I'm new to getting my finances in order, and I've decided to use GNUCash to track my spending and general financial health. I'm reading the manual and trying to take control! My trouble and ...
2
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3answers
3k views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
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1answer
71 views

Rule of thumb for deciding between “description” and “memo”?

I'm new to accounting software. I've been going through some of my old statements and entering them into an accounting system. Because I don't really have any experience with this, I've been having ...
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3answers
6k views

What are the advantages of doing accounting on your personal finances?

What are the advantages of keeping track of your personal finances? Is it only worthwhile if I earn "enough"? Why should I bother?
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1answer
111 views

Cash-basis accounting and barter

I'm aware that the IRS treats barter between businesses as the sale of services in both directions, and this make intuitive sense if you use an accrual accounting method. But how would you treat this ...
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2answers
131 views

How to register obligatory social insurance?

Every month I have to pay a certain amount as social insurance. It is my debt - I have to pay regardless of my income. What should be the source of this debt? Opening balance from equities branch? ...
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1answer
698 views

Journal entries of rent [closed]

How will be the journal entries of these rental transaction: We are giving post dated cheque for payment of rent. Our total rent is example: 12,000 and giving 4 PDC [Post Dated cheque] each 3,000 ...
4
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1answer
860 views

What is the difference between an Independent Financial Advisor (IFA) and an Accountant?

I'm looking for some advice on various small personal financial matters relating to pension, salary, taxation etc. I've been given a personal recommendation for an accountant, but looking at their ...
5
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1answer
38k views

Correct method of recording bank transfer in double-entry accounting

What is the correct way to record the transfer of funds between 2 accounts of the same type (ie checking account to savings account)? Since they are both debit accounts, wouldn't crediting one and ...
4
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2answers
190 views

Need help filling out W-4 form

I need help filling out W-4 form so that I get more money from my paychecks and pay less tax. Recently my circumstances have changed, I am married and have 1 child (2 months old), only I work my wife ...
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1answer
93 views

How to calculate a forecast [closed]

I've been looking around to know how to calculate a sales forecast for sales generated. Not profit/loss; only sales made. Oracle's calculation shows some examples but I'm not sure if that's the ...
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1answer
650 views

Strategy for accounting personal finance in multiple currency?

I have started to budget and track my income and expenses using a simple spreadsheet. It have a better overview of where my money is going, but due to my work history I have money spread over ...
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1answer
74 views

How U.S. Depreciation works Explain in brief? [closed]

As per the my Research I came to know few terms about the U.S. Depreciation. Modified Acclerated Cost Recovery System (MARCS) Sub Divided into two terms- General Depreciation System (GDS) ...
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2answers
3k views

What is the meaning of realization in finance?

The definition of "realization" is well defined by multiple sources in accounting terms while we google it. But, can someone explain in terms of real life example that suits the meaning of ...
4
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1answer
338 views

Credit card creditors have two approaches to handling interest

Most credit cards calculate interest at the end of the cycle and add it to the balance: this reduces the available credit. As an extreme case, when this goes over limit the cardholder is required to ...
4
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3answers
164 views

What are some factors I should consider when choosing between a CPA and tax software

Its my first time filing taxes on my own and I need to decide between using some tax software like TurboTax or hiring an accountant. What are some factors I should consider when making this decision?...
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1answer
1k views

How to post a coupon discount in the ledger

If I am interested in keeping track of the amount I have saved through coupon discounts, how can i Post the transaction on a ledger. Can't see discount falling into any category: asset, expense, ...
2
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1answer
129 views

Income tax for a tradesman / builder

Suppose I employ a builder to do a job for me. For this, he charges £100 for labour, and £200 for materials at cost. Suppose his income tax is charged at 20%. So, he will give £20 in income tax from ...
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0answers
2k views

How to include loan repayments in income statement?

I realize I'm kind of lumping an income statement and statement of cash flows together, but this is still the easier way of doing things for my particular use case. I'm trying to do an income ...
3
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1answer
257 views

Plumber charging VAT on parking

I have a plumber do some work for me recently, and in the invoice he included the parking cost. This was for on-street parking, which I know has no VAT applied to it as it is a direct payment to the ...
12
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6answers
17k views

Why use accounting software like Quickbooks instead of Excel spreadsheets?

Some friends and I are starting a small landscaping cooperative, and are thinking about how we will manage accounting. Places we've worked in the past have used Excel spreadsheets to manage all of ...
1
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1answer
65 views

Does Profit and loss has break down on previous/current tax year or full calendar year?

I'm doing my personal tax return at tax.service.gov.uk for my Limited company and it may be sound very simple question, but it's confusing for me. Given the following Profit and loss table for tax ...
3
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1answer
226 views

PF transfer taxed under 194A India

I have changed my job (previously TCS) in August 2015. I Transferred my PF in May 2016. As far I know PF is not taxable. But in my Form 26AS I see 800(10% of interest accumulated from September 2015 ...
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1answer
1k views

Accounting for foreign exchange transactions and difference between market rate and rate given

I am trying to find how to account for the change in exchange rate and the rate given to me by my bank. I understand the rate change between two dates is a foreign exchange gain or loss, but what ...
0
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1answer
3k views

Difference between double declining balance and reducing balance

As I understand it if we have a double declining balance asset worth £10,000, declining over 10 years, we will depreciate by an annual rate of 20%. But I have also been told that double declining is ...
3
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1answer
206 views

What would be the appropriate account for written off loans to friends and family?

In the past I have lent some money to friends and family, which I have not gotten back. I don't want to ask them for the cash, but I do want to clean up my accounts. How would I record this in my ...
9
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3answers
1k views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $...
4
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4answers
8k views

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

If we take a look at the balance sheet for Microsoft, I see Net Receivables as 21,485,000 [2014] and 19,118,000 [2013] On the cash flow statement, I see Changes In Accounts Receivables as (1,120,000)...
0
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1answer
88 views

Double entry accounts for money judgement award

I won a legal settlement in which the total amount to be paid to me will be done in instalments. Interest will accrue. I debited the principal and interest accruals to an asset account and credited ...
0
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1answer
125 views

How to categorize shared income?

I'm a total bookkeeping noob. My LLC has an agreement with another LLC where we split income coming from a particular source. As it happens the income comes to my business's bank account and then I ...
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1answer
337 views

Debit/Credit confusion

For an asset account, I've learned that debit increases the balance. This makes perfect sense. So that it's straightforward to calculate net worth, it would make sense that when I buy something on a ...
5
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2answers
3k views

Can I invest C-corp or S-corp profits by purchasing stock, bonds or property to reduce tax liability?

If I own a C-corp or an S-corp in the US ( say for example Delaware ), and I take profits from revenue after expenses for the corporation and purchase stock in the US stock markets, bonds or other ...
1
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1answer
8k views

Should written checks be accounted in Accounts Payable?

Should the checks I write be logged via my Accounts Payable account, or just directly from my Bank Asset account to my Expenses account? I see issues with both methods: Bank Asset => Expenses An ...
0
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1answer
116 views

Term for both debit and credit [closed]

This is a vocabulary question: What English term could be used to represent something that is either a debit or a credit in a transaction (without specifically saying which one it is)? Something like ...
2
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0answers
50 views

How do I switch from payment to invoice basis?

I have done my personal finances using payment basis, because it is the simplest and the books of my small business are not particularly complicated. However, I have recently had to register my ...
0
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1answer
764 views

How to handle taxes related to affiliate marketing?

I'm running a U.S. registered business, selling intangible services online. Part of my business is offering an affiliate account registration to individuals and companies who wish to earn money ...
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3answers
831 views

What is actually “exclusive of tax” mean?

Recently I got an offer for work from a U.S. company as an independent contractor, and in the contract it says "All amounts payable pursuant to this agreement are exclusive of taxes." I am quite ...
6
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5answers
197k views

Account that is debited and account that is credited

As a non-English-native person, I somehow find it difficult to understand the following: When an account is said to be debited, what does this mean? How does this differ from an account that is ...
2
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1answer
300 views

Balancing a messy flat account

I am looking for advice on making sense of a mess of transactions for a 'flat account' which a previous tenant was operating and has handed over to me. Our landlord had notified me that to my ...
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1answer
916 views

What is the meaning of “FQ2”?

I see the words FQ2 used in news reports sometimes, but I don't know what it means. Can someone help me here?
2
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1answer
105 views

How to account for letting agent carrying rent over to next month's statement?

My letting agent collects my tenant's rent on the 11th of the month. They then take their fee (8%) at that time of the whole amount. Then they only pay out from the 11th of the month until the end of ...
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1answer
3k views

Adding some more value to some existing fixed asset

Suppose i have a computer system worth $600 which i purchased on 1-jan-2012 and now i have purchased more RAM on 6-7-2012, how to do this kind of transactions properly. How to add value to an asset? ...

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