How to record the tax related transactions in the book of accounts? explain with examples?
535963
hi josejen, this is a wonderful question that need deep knowledge in tax and accounting. First u need to know that there are 2 kinds of accounting one cash system and other accruel system. In cash system matter is simple. just debit the tax you paid and credit the cash/ bank as and when you paid it. Please note that you cannot claim a deduction on this behalf from income tax.\n Now when you are following accruel system you have two options. One just acount the calculated tax as a liability, hence debit income tax and credit income tax payable. deibit the liability a/c and credit bank/ cash when you are payig it. \nBut if you are followin accounting standards to account tax matter is too complicate. you need to calculate what is a .......if you want know more ...please contact me
263314
Here ya go...\n\nAn invoice, for it to be acceptable to the IRS needs the following\n\n1 Vendors Name and DBA (doing business as or your business name.\n\n2 Your federal ID number. If you don't have this, ask your publisher if they need it for their 1099's and offer it then but don't write it on the invoice if you don't feel secure with that.\n\n3 Address of businss\n\n4 Phone numbers\n\n5 Service renedered. Format the invoice to appear like a receipt if you are wondering how it should look.\n\n6 Cost of service\n\n7 Date of service\n\nThere are invoice blanks at Stapels that would help you a lot and there are online invoices too. Here is a link to one. http://www.businessownersideacafe.com/bizforms/expense2.html?IC=6b6cc89f8fe5e4f16ef4d38ee4a5f985
600099
Keep all tax records until the statute of limitation expires; I think it's seven years. Keep all "terms and conditions" type paperwork for any open accounts: insurance, credit cards, mortgage, etc. Keep receipts for major purchases at least until the warranty expires. Keep any records on which there's any hint of a dispute with anyone.\n\nAs for monthly statements, keep the most current one for each account, and you can toss the rest as soon as you've reconciled them and verified that you were charged correctly. You may want to keep a credit card statement if there's a purchase on it for which you plan to claim reimbursement (from your employer, etc.)\n\nWhatever you get rid of, be sure to shred!
227685
Dr. Discount (given)\nDr. Cash \nCr. Sale \n\nThis is the journal entry for recording the transaction... it gives the accounts affected..\n\nKnow the fundamental concepts of accounting here...\n\nhttp://www.futureaccountant.com/accounting-process/study-notes/\n\nhttp://www.futureaccountant.com\nhttp://www.schoolingkids.com
1120670
ok, going from memory\n\n\nc)analyze business transactions\ne) journalize\ni) post to ledger accounts\nd) prepare a trial balance\nh)journalize and post adjusting enteries\nb) prepare an adjusted trial balance\nf)journalize and post closing enteries\na) prepare a post closing trial balance\ng)prepare financial statements
331868
Can you post a copy of both bills so I can put them in Access and run a compare query on them?
329605
What is an accrual? \n\nWhen you pay a bill, the expense is recorded in the General Ledger; when you receive a payment for a service or good, the income is recorded in the General Ledger. At the end of each year, we need to make sure that expenses are recorded for all goods or services you have received during the year. We also need to make sure income is recorded for all goods or services you have provided during the year. There may be cases where you have not paid an invoice by June 30 for a good or service you received during the year. You may also have payments you have not yet received for a good or service you provided this year. In these cases, we need to process a journal voucher to record an “accrual” for the unpaid invoice and the outstanding income. \n\nIn short, accruals allow expenses to be reported when incurred, not paid, and income to be reported when it is earned, not received. \n\nAs examples: \n• A department orders and receives tow computers at the end of June 2004. However, the bill is not received Until July and is not processed until August. Because the computers were received in FY2004, an accrual journal for these expenses should be processed. This accrual would charge the appropriate 33-digit expense coding and would credit the balance sheet Accounts Payable liability. \n• A department provides services to an outside institution in June 2004, but doesn’t receive payment from the customer until July. Because the service was provided in FY2004, an accrual journal for this income should be processed. This accrual would credit the appropriate 33-digit income coding and would debit the balance sheet Accounts Receivable coding. \nThe following are the general rules regarding AP (expense) accruals: \n• Accounts payable accruals should be made for items where a good or service has been received in the current fiscal year but will not be paid for prior to year-end. This includes items for which an invoice has been received but not paid, as well as items for which no invoice has yet been received. If no invoice has been received, then the department should process the accrual based either upon the known cost or an estimated cost if one can reasonably be predicted. Any known costs that are for a minimum of $1000 must be accrued. It is preferable that items less than $1000 also be accrued, but it is not mandatory. \n• Departments should not delay processing these expenses because of lack of funding. Departments should consult with their financial office if there is a funding issue.\n------------------------------------------------------------\nA prepayment is a payment in advance of the period to which it pertains. Let's take the above example a stage further. At the 1st of April the rent for the period 1st April to 30th June becomes due and this is paid (£300 again), exactly on time. This is only a prepayment because Jim Sayers, the business owner, has decided that he wants the firms' financial year to run from 1st June to 31st May each year. So, at midnight on 31st May, he has paid one months rent in advance for next year (this being the rent for June). A look at the diagram below might help:\n\nDate 1 Jan 31 1 Feb 28 1 Mar 31 1 Apr 30 1 May 31 1 Jun 30 \nPayments 1st: £300     1st : £300   Prepayment \nPeriod covered by payment Whole period Whole period \nFinancial year This financial year Next financial year \n\nAt the end of the year, the 'profit and loss account' is drawn-up, and after all of this the rent account will look as follows:\n\nRENT \n   Debits £   Credits £ \n1 1 Bank 300       \n1 4 Bank 300 31 5 balance c/d 600 \n    600     600 \n31 5 balance b/d 600 31 5 to profit and loss a/c 500 \n    ___ 31 5 balance c/d 100 \n    600     600 \n1 6 balance b/d 100       \n---------------------------------------------------------\nCapital expenditures ("CAPEX") are expenditures used by a company to acquire or upgrade physical assets such as equipment, property,
751257
I am unable to follow your question.\n\nIn finance, one is Receipts and the other is Payments.\n\nPut all your income in a book and expenses in another.\nTry to mark it how you earn those amounts.
160519
go to the place you filed them or contact the irs they keep copies
221078
http://www.aicpa.org/pubs/jofa/jul1999/financial_accounting.htm
1108740
It does not matter when you purchased it. You converted it from personal use to business use in 2006. Therefore, when deducting it as a business expense, you can only deduct it's fair market value at the time you converted it to business use, which had better be less than what you paid for it (since CPUs go down in price rather quickly). Be ready to prove the deduction in case IRS decides to check you out.\n\nAs mentioned above, you can use Section 179. All in all, unless you plan to hire a taxman, you should get acquainted with the IRS website and relevant publications.
248208
The process of accounting after the journal entry is passed is mechanical and it can be mechanised by using the logical flow of information.....\n\nTherefore, in Computerised accounting, you only record a journal entry...and the rest is done by the computer..\n\n\nlearn the fundamental concepts here to have a wonderful understanding on the basics of accounting...\n\nhttp://www.futureaccountant.com/accounting-process/study-notes/\n\n\nhttp://www.futureaccountant.com/\n\nhttp://www.schoolingkids.com/
871397
correct, ms money is seperate,\nmay try using excel,\n\nAccounting\nhttp://www.enablecomputing.com/ShowPage.ec?page=OneStepAccounting&menu=OneStepAccounting\n\nhttp://www.google.com/Top/Computers/Software/Freeware/Accounting/\n\nhttp://www.freewarefiles.com/cat_8_78_Accounting.html
172216
from the horses mouth!\nguidelines\nhttp://www.irs.gov/publications/p561/ar02.html\n\nvalues\nhttp://tinyurl.com/28nan
276875
for budget purposes, use quicken and enter all the info. toss the receipts into a box or bag after you enter them. you will save a lot of time using the computer and you can do some good planning if you are into it.
934855
Out of context, they just mean left (debit) or right (credit) on the ledger.\n\nAccounting uses 5 types of accounts. 3 are balance sheet accounts (asset, liability and owners equity accounts) and 2 are income statement accounts (revenue and expense accounts). \n\nThe balance sheet has asset accounts on the left and liability and owners equity accounts on the right.  The income statement has revenue accounts and expense accounts.  Think of income statement accounts as sub-accounts in the owners equity section of the balance sheet and the debits and credits will make more sense.\n\nAsset accounts normally have a debit balance, so debits increase an asset account and credits decrease an asset account.\n\nLiabilities and owners equity accounts normally have a credit balance, so credits increase a liability or equity account and debits decrease a liability or owners equity account.\n\nThe basic accounting formula that must hold true at all times is:\n\nAssets = Liabilities + Owners equity  \n\n(that's why it's called a balance sheet!)\n\nAll accounting transactions are recorded using double entry bookkeeping where the total of the debits must equal the total of the credits.  One side of a transaction may increase one asset while decreasing another. This would happen when cash (an asset) is paid for inventory (another asset). Inventory is debited and cash is credited.  If the company buys inventory on credit, then the transaction would be: Inventory is debited and Accounts Payable is credited. Accounts Payable is a liability account. When that bill gets paid: Accounts payable is debited and cash is credited.\n\nRevenue increases owners equity, so a revenue item is a credit. Expenses decrease owners equity, so an expense item is a debit. If expenses exceed revenues for a period, it is a loss and a net debit. (It reduces owners equity) If revenues exceed expenses for a period, it is a profit and a net credit. (It increases owners equity.)
690890
The office(garage), if you use a computer for the bills of the company-the cost of the computer plus any programs that you buy for the business use. Clothes, that you buy to wear while you travel (obviously you can't write off any designer clothes :) )\nGas, meals, lodging, any navigation system that you use when you travel with the trucks... the list can go on and on.  I am myself an accountant and I am familiar with this but you really have to contact a local accountant.  Have him/her help you with the set-up of your business and to explain to you in more detail what is a write-off.  Another suggestion-have you thought about incorporating?  An S-copr can give you a OT of benefits, of which the biggest one is separate legal entity (if your business goes down or someone is suing you they can not go after your personal assets, such as your house, personal car, etc.)  Talk to your accountant for that.