Therefore, a general ledger contains individual accounts in which similar transactions are recorded, whether relating to an asset, a liability, an individual, or an expense. Consider the following example where a company receives a $1,000 payment from a client for its services. The accountant would then increase the asset column by $1,000 and subtract $1,000 […]
Category Archives: Bookkeeping
They can also be integrated with other systems to provide additional insights into customer buying habits and help the business make more informed decisions. Both cash and credit sales are recorded in the same manner with regard to income recognition. Where A is the actual cash received, B is the retail price before sales tax, […]