[Debit] Net income account
[Credit] General Reserves
debit reserve accountcredit cash / bank
You record on the debit side an amount of 5000 that should be transferred to the general reserve account.
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
Debit drawings accountCredit inventory account
Debit reserve accountCredit cash / bank
debit reserve accountcredit cash / bank
Credit your capital account, debit the freehold property account
You record on the debit side an amount of 5000 that should be transferred to the general reserve account.
General reserve account cannot be used for purchases of building as general reserve accounts is fixed for some limited kind of transactions like
Debit drawings accountCredit inventory account
Debit reserve accountCredit cash / bank
Journal entry for opening a bank account
Reserve account can be reduce as follows: [Debit] Reserve account xxxx [Credit] Share capital account xxxx
When recording a journal entry for a sales account, ensure that the sales are strictly done on credit terms.
if journal entry is misclassified to some other account then it is required to re-classify the journal entry for correct impact or record purposes.
The journal entry is Account Payable - Royal Company (debit) 600 Cash (credit) 600
a journal entry must include atleast one debit and one credit account to be a legal journal entry.