Accounting Made Simple by 30 Examples

Description

We will simplify how to make journal entry records, debit- credit accounts, which accounts are assets and which are liabilities.

As we move further, we will make more complicated entries, so hurry up :)

Contents: (All with journal entry examples)

1) Cash Sale: Journal Entry for cash sale

2) Inventory Purchase : Journal Entry for Inventory Purchase

3) Fixed Asset Sale: Selling a fixed asset

4) Service Sale: Selling a service

5) Bank Loan Usage: Using a bank loan

6) Sales with Credit: Again we sell, but this time with credit (journal entry)

7) Collection: Collecting the receivable in example 7

8) Bad Debt: What journal entry do we do if we can not collect money?

9) Sales Discount: We make a sale with discount

10) Depreciation (Straight Line Method): Basic application of depreciation

11) Compound Interest: Compound interest over many years

12) Purchasing a fixed asset with interest rate: Paying the interest

13) FIFO method: Most popular cost calculation method

14) Weighted Average method: Important cost calculation method

15) LIFO method: Important cost calculation method

16) Sale with advance: Sale with advanced received previously

17) Bad Debt allowance: Directing bad debt to income statement

18) Calculating Inventory

19) Cost of Goods Sold (Journal Entry)

20)  Calculating Inventory Turnover Rate: Ratio for inventories

21) Invesment in available for sale securities: Short term investment

22) Investment in another company (%20- %50): Investment that does not give you majority

23) Investment in another company (above %50): Investment giving you majority

24) General Ledger: A general look

25) Depriciation (Declining balances): Second alternative depreciation method

26) Distribution of cash dividends: Distributing the profit to investors

27) Current Ratio

28) Leverage

29)  Receivable Turnover Rate

30) Payable Turnover Rate.

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