justify the purpose of an expenditure
We debiting the rent expense because when expenses are incurred so the rule of double entry is to debit the expense account and increased liability....it is rules of GAAP.
Generally NO, wages are an expense. The only exception to the rule is if a company has "wages payable" which is wages that they owe but have not yet paid, "wages payable" is a liability until they are paid. Once paid, the account is closed into wage expense and is listed under the asset column of the Trial Balance sheet, until the end of the accounting cycle when expense accounts are closed out for the year end.
Expense account is a debit account. So for example the expense is rent paid, so every year the rent expense increases and we record it in the debit side of the rent payable account and to complete the double entry, credit the same amount to the profit and loss account. Follow this basic rule to know which side your looking for: DAXP (debit side items), LICS (credit side items) D: drawings A:assets X:expenses P:purchases, L:liabilities I:income C:capital S:sales. So DAXP items increase in the debit side while LICS items increase in the credit side.
As a general rule it is a good idea to report all income tax gains or losses. Contact a accountant to find out more about what you need to do for your specific situation.
For most items of income and expense, three years is the normal rule. However, for any item, such as depreciation on assets which can be claimed in excess of the normal three years, you will want to keep your papers for as long as you are claiming the asset. Papers relating to your cost, or cost basis, in capital assets should be kept forever and handed down to whoever will inherit these assets from you.
justify the purpose of an expenditure
justify the purpose of an expenditure
necessary expense rule
necessary expense rule
necessary expense rule
necessary expense rule
necessary expense rule
necessary expense rule
Necessary Expense Rule
necessary expense rule
Necessary Expense Rule
Necessary Expense Rule