ter the profit and loss account is drawn up), electricity accounts may seem:
Electrical
Direct debit, credit, $ Date Date U.S. dollars
18.07.08 Bank 66
16.10.08 Bank 96
20.01.09 31.03.09 56 bank in the C / D one trillion 218
218 218
31.03.09 balanced breakfast / D for one trillion 218 316 Income 31.03.09
31.03.09 Balance C / D Article 98 ___
316 316
04/09/2001 balanced breakfast / D Article 98
Prepayments
Prepayments on the debtor's assets are included within the balance sheet.
This money paid for a place in the period before
Costs are related. In other words, it is something that has been paid to
Dictionary.
..
The total amount includes the cost doelsigie:
Actually paid in cash
Get ahead of the previous era of all prepaid
- End of period prepaid
Examples of prepaid
Agencies in advance to an April X2 $ 120,000 (GST exclusive to) six months for software licenses and support services to pay. The deal initially (and incorrectly) been paid in full month in which the costs were recorded. The initial cost of journals, and support services to the six months to record the license:
DR of the license fee cost
(Cost increase - Operating Statement)
$ 120,000
Cash at Bank of life (reduction of assets - balance sheet) $ 120,000
With the decrease in the journal, well aware of prepaid processing
Cost:
Disasters and other prepaid expenses (an increase of assets - balance sheet) $ 120,000
Cost of the license fee, CR
(Cost reduction - Operating Statement)
$ 120,000
Reduced monthly journal, and be aware in advance of payment:
DR of the license fee cost
Cost (increase - Operating
Statement)
$ 20,000
Prepaid expenses and other organisms (reduction of assets - balance sheet) $ 20,000
(C) descriptions and historical cost concepts and matching concepts are described with examples.
Matching concept
Under this concept, coast coast to sell products or services rendered to match the earnings of these things are related. Likewise, the cost of any revenue earned during the period are related. Accrual Basis of Accounting The concept is very important to
Manager or management employee's salary: - For example. The best course is, they occur in the income statement of the accounting period that these costs will be charged. These costs can be associated with the product, known as cost of products from these charges, costs are specified in separate periods.
A justification for the concept of matching concepts are derived from the accounting period. Profit during the same period of the accounting period the period of the revenue is calculated after deducting the cost of. As they occur can not be associated with future revenue costs will be written off.
Historical cost
Historical cost is suitable for economic decisions. Managers make decisions about the future, as promised, they have historical data is required for the transaction. They should be able to review the past efforts of this effort is a measure of historical cost.
For example, 2009at the cost of land and $ 90,000 is still present in the purchase cost, replacement cost, inflation adjusted cost is much higher today, even if that cost or historical c
