Questions tagged [bookkeeping]

Bookkeeping is the process of recording business data in a prescribed format. It often forms the first step in the accounting procedures of a company.

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45 views

Okay to cancel “Loans to Shareholders” against “Retained Earnings”?

Let's say there's an S Corporation with a single shareholder, a $200 balance in "Loans to Shareholders", and a $300 balance in Retained Earnings. Is it okay to cancel the shareholder's debt by ...
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2answers
60 views

How do I bookkeep an Ecommerce website?

I have a multi vendor e-commerce website where I sell goods from 3rd party vendors. When an item is sold on my website, the money is stored in my bank account. Monthly, I transfer money earned to the ...
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1answer
59 views

Which software is suitable to track my investment portolio [closed]

Nowadays I am using google spreadsheet to track my portfolio. Is there some better software for this? Another problem is that some parts of my portfolio are highly volatile (but I want to keep those ...
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1answer
232 views

How to teach personal reconciliation and book balancing?

How do I go about finding good resources to teach my children about good money management. Something that will be able to show them how to run a personal bank account, how to reconcile and balance it. ...
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0answers
53 views

How do I set up the books for LLC taxed as a C-Corp?

Most resources online for bookeeping for LLCs immediately repeat a myth about C-Corp taxation subjecting you to double-taxation, declare that nobody would set up their single-member LLC as anything ...
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1answer
52 views

Recording rental deposit return minus cleaning fees

This is a question about Double-Entry Bookkeeping. I am having a hard time correctly recording the fact that due to shared cleaning fees I owe the subleasee less than the deposit he gave me. These ...
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1answer
121 views

How do I properly account for interest charged on a loan in GnuCash?

I've just started accounting and entering initial balances for my personal finances with GNUcash and I'm curious about the proper way to account for interest charged on student loans and credit cards. ...
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2answers
1k views

End of financial year: closing transactions

What book-keeping practice is best to keep each year's transactions balanced within that year? This question seeks specifically an answer that benefits from the consensus of the accumulated wisdom of ...
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1answer
224 views

How to interpret equity

I understand Equity to be "Net Worth", as calculated by Assets - Liabilities. I also understand the "Expanded Fundamental Accounting Equation" to be Assets + Expenses = Liabilities + Equity + Income ...
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1answer
925 views

Handling expenses for corporate tax in GnuCash

I am very new to the whole concept of book-keeping (Read GnuCash help - that's it) at the moment and was wondering if I could get some pointers in here. I am running a micro limited company (One ...
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5answers
19k views

Handling waitress unclaimed pay from three years ago

Each week our boss gives us payslips with our hours worked and we can cash them right at the place of work. Pretty simple. You get a receipt for your hours worked for the week and a slip to turn into ...
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6answers
12k views

How to account for startup costs for an LLC from personal money?

If I start a business (LLC, specifically) and incur some of the startup costs with my own money, how do I account for this in the bookkeeping once the LLC's bank account is up and running? For ...
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4answers
292 views

How to keep track of revenue and expenses of a small business that I rarely visit?

I'm a programmer looking to invest some money into opening a very very small restaurant which will be run by my friend (who's a professional restaurant manager) with occasional help from family ...
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3answers
261 views

In double-entry book keeping, how should I track planned expenses

So, I'm working on getting a bit better at managing my household finances and am currently working to learn double-entry bookkeeping. One thing I need to separate out and track a little better is ...
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1answer
93 views

How to account for transferring money from a USD account to a GBP account?

I am using ZipBooks online software for my bookkeeping, however I do not know how to approach the following situation. I have 2 bank accounts; one in USD, the other in GBP, and I am transferring $...
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0answers
172 views

Accrual accounting: how to implement prepaid tax

I am trying to put my personal finances in order and I figured that accrual accounting fits my needs for keeping a better track of my records. I am new to accrual accounting and while I think that I ...
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1answer
411 views

Xero - How to reconcile a transaction when the period has been locked

I use Xero for my consultancy company's book-keeping. My accounts from a couple of months ago are locked (due to submitting a VAT (UK sales tax) return). I have an unreconciled bank transaction within ...
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1answer
72 views

How to account for transactions which may have multiple causes?

Say I have a transaction from my bank in a foreign currency (say a taxi) which causes me to incur a "foreign currency transaction fee" (e.g. 2% of the transaction). One way to look at this cost is ...
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1answer
488 views

How to double-entry bookkeep money incoming from sold items?

I started doing double-entry bookkeeping with GnuCash to keep track of my personal finances, down to the penny. I have as assets my bank account and "cash in wallet", and many expense accounts for ...
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5answers
11k views

Double-entry accounting: how to keep track of mortgage installments as expenses?

Context: I am new to double-entry accounting, I use GnuCash for my personal family bookkeeping. At the moment, the main goal for me is to keep track of incomes/expenses of our family over time. For ...
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1answer
108 views

How to get visibility into contributions to assets

I'm using double entry with Assets, Expenses, Income, Liabilities, and Equity. To illustrate my question with easy round numbers: Income one month is 10k; 5k goes into an asset like a 401k account (...
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2answers
1k views

In double entry book-keeping, how should I record writing of a check?

Say I write a check (in British English, a cheque) to pay money to some supplier out of my business's current account. I post the check. As far as I'm concerned, the company has spent that money and ...
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1answer
755 views

Journal entry for savings of multiple family members

I'm recording family-related transactions in a journal. My question is regarding a cash deposit (asset debit). For example, my family earned $300 at a garage sale. I deposit that entire amount into ...
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3answers
746 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" ...
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1answer
125 views

What are the must know topics for personal accounting? [closed]

I'm 18 years old; last year I finished high school. I attended a school oriented in accounting, and even though I didn't care much about it at the time, now I realize how important is to know how to ...
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1answer
720 views

How do you set up current year bookkeeping based on previous year balance sheet and profit and loss items?

I'm setting up this year's accounting ledger for a sole proprietorship. It used to be done by CPAs in the past but I decided it's time to bite the bullet and start doing it myself. All is going well,...
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3answers
753 views

Double-entry bookkeeping: When selling an asset, does the money come from, Equity or Income?

I use a double-entry system (ledger) to manage my personal finances. I have set it up so that the only entries in my Equity are my opening balances. If I sell an asset (e.g. laptop) whose value I ...
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1answer
177 views

Best Practices for Managing Paper Receipts

I'm curious to get some input from the community on best practices for managing paper receipts, whether personal receipts or business-related receipts. For example... What are the arguments for ...
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4answers
7k views

When bookkeeping, which transaction date should I use from my bank statement?

When reconciling my bookkeeping with my bank statement, should I use the date the transaction occurred or the date the bank processed the transaction? Also, which date should I use when transferring ...
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2answers
1k views

Paying extra toward installment loans - is it a prepayment or paying ahead?

If someone has an installment loan with equal, fully amortizing payments, and the borrower pays extra each month, how does the creditor decide whether to apply the extra as a prepayment to principal ...
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1answer
302 views

What's the best way to account for a risky investment - As an asset or an expense?

We normally account for investments as a separate account in assets: Assets:Banks:Bank ABC => Assets:Risky Investments:Investment XYZ which is consistent with the fact of having an asset that ...
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3answers
396 views

Help in understanding a basic accounting principle

'An entry which increases an asset account is called a debit.' So if my bank account is my asset account, when I debit money, money actually goes out so it is a 'decrease'. But the above statement ...
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1answer
99 views

What is S/P in “Tax Deduction S/P”? [closed]

This may be an unusual question, but I have a plugboard labeled "Tax Deduction S/P" for an IBM 402 accounting machine from the 1950s. This must have been used to process records on punched cards to ...
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2answers
904 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 | ...
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2answers
49k views

Lending money to someone: how to book?

I'm trying my hand at double-entry bookkeeping for my personal finances. While I get the gist, I have trouble with the details. Please bear with me if I use the wrong terminology. I have lent some ...
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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 ...
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1answer
39k 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 ...
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1answer
185 views

Bookkeeping accounts for rent-to-own property

I own a house which I'm renting to tenants. We've entered a long-term rent-to-own contract, where the principle portion of each mortgage payment becomes potential equity for the tenant. How do I ...
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1answer
135 views

Book keeping setup for real property depreciation

I have a rental property. I'd like to set up my books such that: the cost basis depreciable value of the house is reflected in an account, the annual depreciation is recorded sensibly, the initial ...
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1answer
207 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 ...
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1answer
74 views

Reinvesting earnings increases the book value of equity?

I'm reading this text about elementary concepts in finance. It keeps repeating an example where a company reinvests part of its profits (earnings), and claims that this increases the book value of ...
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1answer
126 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
703 views

Double-entry bookkeeping: How to account for non-monetary taxable benefits received from employer?

I'm trying to keep detailed books for my personal finances. One thing I haven't figured out how to represent is various non-monetary taxable benefits that I get at work. For example, a gift or a meal. ...
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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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1answer
553 views

Transferring money from One business checking to another business checking

How do I classify in Quickbooks a cash transfer from one business checking account to another business checking account that are linked together. 2 separate businesses. My husband and I are the only ...
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1answer
80 views

Would I need to keep track of 1099s?

I run a small business and am looking to pay some people to assist with sales as contractors. They would be paid via something like paypal, google or square. Do I still need to file a 1099 for each ...
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1answer
450 views

correct usage of “R” field, esp. with respect to credit card account type

Using GnuCash to track where my money goes and what comes in. I have as assets my bank account and "cash in wallet", and many expense accounts for food, gas, water, electricity, clothes, transport/...
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1answer
510 views

GnuCash, how do I book loan from credit card, being paid back with salary? [duplicate]

I am doing double-entry bookkeeping with GnuCash to track my personal finances. Sometimes I spent money on expenses which my employer is supposed to spent, and I later get reimbursed. For example, I ...
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1answer
49 views

If I start a company and put in £100, what account should that be filed under? [closed]

If I start a company, become its director, and put in £100, what account should that be filed under? I imagine the account should be an income type account. But I do not know what to call it. It's ...
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2answers
3k views

Which date to record for a transaction?

I need to record a transaction in a journal. If I take the date of the paper receipt, this might be different to the date on my bank statement. Which one should I use? Should I use one, and then ...