Happy Accountant: Accounting Blog & Online Accountant

*Not every business makes cash sales.  However, with a credit sale, there is no immediate entry in the Cash account, since no cash has actually changed hands.  Therefore, debtors accounts are used.  For example, if a business makes a credit sale for £200, the sale itself is accounted for as follows: DEBTORS ACCOUNT Debit £200 SALES ACCOUNT Credit £200 [read more]

*Suppose a business makes a cash sale for £100, it’s double-entry accounting would be as follows: CASH ACCOUNT Debit £100 SALES ACCOUNT Credit £100 This is because the cash asset increases by £100 (and an increase in an asset is a debit) Note that the debits and credits for the cash account (ie the bank [read more]

* T accounts are what ledger accounts might look like if they were kept on paper (as opposed to using computer software).  They are nothing mysterious, drawn on paper, a T account is quite literally a large T!  The title of the ledger (for example, “motor expenses” is written across the top), debit entries against that account [read more]

*It’s important to remember that, over and above meeting legal requirements, day-to-day accounts are there to serve the business and not the other way round. It is not always appropriate to keep full double-entry accounting records.  Indeed, for many businesses, it would be a mistake that would be costly in time and effort for very little [read more]

*To use the sales ledger spreadsheet is easy.  Just record all your sales invoices as you raise them.  Allow one row per invoice. Enter the total amounts in columns D and E (if VAT registered) and check that the figure in column F is as you have put in your actual sales invoice. If you [read more]

*To finish off this simple spreadsheet, it might be helpful to make it look slightly more presentable.Select Row 1 (by clicking on the 1) and then bring up the Format Cells dialog box (either by Menu|Format, keyboard shortcut or right mouse button menu) and then you can make the text bold (Font tab), colour in [read more]

*To format the numbers (in columns D,E, & F) so that they all have 2 decimal places, select these columns (by clicking at the top (where the column letter is) and then chosing Format|Cells and then (on the number tab) click number and make sure that there is a 2 in decimal places. I also [read more]