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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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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1answer
755 views

Change In Cash and Cash Equivalents (cash flow) vs Cash And Cash Equivalents (balance sheet)

Goal: Figure out why Change In Cash and Cash Equivalents on the cash flow statement does not equal change in Cash And Cash Equivalents on the balance sheet. Example: Stock: DEO Period Ending: 6/...
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2answers
124 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 ...
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1answer
481 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 ...
2
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1answer
144 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
571 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 ...
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?
29
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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
109 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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1answer
668 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 ...
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1answer
92 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
578 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
73 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
2k 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 ...
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1answer
964 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, ...
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1answer
122 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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1answer
3k views

Is a fee note the same as an invoice?

I pay an accountant £800 a year to do the usual accountancy things. I've received a fee note from him for filing the annual confirmation statement. So, is a fee note the same as an invoice? Do I ...
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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
249 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 ...
2
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1answer
3k views

Is VAT applied when a tradesman charges for materials?

I have been employing a plumber to do some work in my bathroom, and recently received the invoice. This consists of a charge for the labour, plus a list of materials used for the job, which he is also ...
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1answer
64 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 ...
3
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3answers
668 views

Accounting equation: does income really decrease equity?

I am new to using double-entry bookkeeping for personal finances. GnuCash uses a variant of the accounting equation that has five variables, and which seems to be known colloquially as an "expanded" ...
4
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2answers
182 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
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 ...
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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 ...
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1answer
81 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 ...
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1answer
123 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 ...
4
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1answer
333 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 ...
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1answer
7k 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 ...
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1answer
103 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 ...
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2answers
503 views

How much accounting knowledge is needed to read financial statements of publicly traded companies?

"You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort ...
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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 ...
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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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1answer
732 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
640 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 ...
4
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3answers
162 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
574 views

Accounting Entry for Selling a Covered Call

I recently started looking at trading options and started with the time honored tradition of selling a covered call. What I don't understand now is what my trading platform (TD Ameritrade) balances ...
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2answers
129 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? ...
2
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1answer
104 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
2k views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
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2answers
3k views

How does IRS deal with 1099s across accounting methods?

For a US company using the accrual method of accounting, if they receive a bill in January 2016 for work done in 2015, I expect they are supposed to report the 1099 income to the biller as part of the ...
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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
217 views

Can I count a 2015 expense, if I paid the bill in 2016? [duplicate]

I incurred an expense in 2015, put it on a credit card, but didn't pay it off until January 2016, can I count that as an expense for 2015?
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2answers
75 views

How do I calculate Future value adding fund charges?

Here is the statement on the NEST website. "We take a small percentage of the money going into your pot known as a contribution charge. This amount is 1.8 per cent." They then also charge £15 ...
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1answer
37 views

Question regarding Schedule 13D

I have very limited accounting experience, and I'm looking at the publicly traded firm, QC Holding, Inc. I want to know more about controlling interest in the firm, so I was looking at their SC 13Ds ...
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1answer
400 views

How would I account in GnuCash for me and another entity contributing to a joint account?

Me and my wife are starting a joint account, separate from both of our accounts. The intent is for both of us to contribute equally to the account and use it for joint purchases. When I make a ...
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1answer
51 views

How to do a direct cash flow statement given a stock ticker

Does anyone know of a good step by step process on how to generate a direct cash flow statement for a publicly traded company? I was able to look up their financial info (given their stock ticker) on ...
2
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2answers
2k views

What is the Equity account for in GnuCash?

What is the purpose of Equity account in GnuCash? For example, I have income through Salary account $500, after I have expense by buying book for $5 (so in Expense:Books account is entry for $5). But ...
2
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1answer
114 views

Future Value of an annuity

If I pay 4 half-yearly installments in an investment scheme or I pay monthly installments of the same time (2 years). Interest rate in both cases is 9% compounded monthly. What will be my future value ...