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How can pass sundry creditors journal entry?
Purchases A/c -Dr 5000 To Sundry Creditors 5000
Does the increase in accounts receivable increase cash flow?
No, if your accounts receivable is increasing then you are not collecting cash in from your debtors as quick as you are raising invoices to them therefore your cash flow is decreasing due to trapping working capital in debtors
What is the general ledger journal entry for a refund?
Cash a/c to debtors a/c
What are the components of current assets?
The components of current assets are creditors, cash, debtors and stock.
Examples of current asset?
Examples of current assets are cash(in hand or at bank),
What is cash credit limit and bank guarantee limit in contract documents for construction works by contractor?
for the purpose of business working capital bank sanction against property and stock+debtors-credit = cash credit
How can pass sundry creditors journal entry?
Purchases A/c -Dr 5000 To Sundry Creditors 5000
Does the increase in accounts receivable increase cash flow?
No, if your accounts receivable is increasing then you are not collecting cash in from your debtors as quick as you are raising invoices to them therefore your cash flow is decreasing due to trapping working capital in debtors
What is the journal entry for a cash purchase?
Debit Asset a/c if asset a/c is bought and credit Cash a/c OR if these are sundry supplies debit that head and credit cash acct
What is the general ledger journal entry for a refund?
Cash a/c to debtors a/c
How do you calculate average trade debtors?
To calculate average trade debtors, you need to add the opening trade debtors balance to the closing trade debtors balance and divide it by 2. This will give you the average trade debtors for the specified period.
What are the components of current assets?
The components of current assets are creditors, cash, debtors and stock.
Examples of current asset?
Examples of current assets are cash(in hand or at bank),
4 aspects to cash inflow to a business?
Sales - amount to be received from selling good or service. ■ Cash from debtors. ■ Capital. ■ Lone from bank.
How do you record loan proceeds using cash basis acctg Debit Cash and Credit what?
If cash is received from debtors then accounts receivable will be credited otherwise to whom it is received will be credited.
How can cash discounts improve cash collections?
Discout allowed incourage the debtors to avail discounts and save money and they tries to pay as quick as possible
What is Debtors collection period?
The average amount of days after making a sale before receiving cash. DCP = Receivables/Average sales per day or DCR = (average debtors/turnover)*365
