What is the Journal entry for advance received?
Journal Entry for Income Received in Advance Income A/C Debit Debit the decrease in income To Income Received in Advance A/C Credit Credit the increase in...
Category: General
What happens if you get audited?
The IRS will propose taxes and possibly penalties, and you’ll get a “90-day letter” (also known as a statutory notice of deficiency). You’ll have 90 days ...
What does it mean to sponsor a football team?
What are sponsorships in sports? Put very simply, a sponsorship in football, and sport in general, is a business providing funds to a team to help them bu...
How do you calculate equity and subsidiary income?
Equity Income is calculated by adding up a shareholder’s dividend payouts for a year, along with the capital gains made from stock sales….Equity Income Ca...
Can you change Inc to LLC?
Changing a corporation to an LLC is not an impossible task, but the traditional way of doing so can be quite complicated and expensive, as it requires you...
What is considered income for a sole proprietor?
That’s because the IRS treats the business’s profits and a sole proprietor’s personal income as the same thing. In other words, after you’ve deducted busi...
Why GAAP does not recognize the direct write-off method?
The GAAP prohibits direct write-off because it doesn’t conform to the matching principle, which requires that every transaction affecting one account, suc...
How many years of books should I keep my income tax?
6 years For how long the books need to be maintained under section 44AA Of the Income Tax Act, 1961? As per the relevant provisions, you must maintain the...
What is the journal entry of received?
Explanation: Since Bank is an Asset, on receipt of cash from Bank,Bank’s A/c would be credited, as there is a decrease inBank Balance, which is an asset ....
Is drawing account a personal account?
Since drawings are used by the businessman for personal purposes it is a personal account. Is drawing asset or liability? Drawing is neither an asset or l...
