When supplies are purchased on account, it increases assets and liabilities in the accounting equation. Specifically, supplies (an asset) increase, while Accounts Payable (a liability) also increase by the same amount. This keeps the accounting equation balanced, as the increase in assets is offset by an equal increase in liabilities.
account or accounting equation
Debit Withdraw account and Credit Cash
The amount which is paid on account(credit) should be recorded in a liability account i believe while record the purchased supplies in the asset.
-liabilites, +stockholder's equity
by sale on account you mean goods sold to the costumer but the cash was not received immediately. the accounting equation for credit sales is to CR the revenue/sales/turnover in your income statement. DR the receivables account on the balance sheet. after the cash is received. CR the receivables account. DR the cash account.
account or accounting equation
The purchase of a short-term investment typically results in an increase in assets (cash decreases, and the investment account increases). The accounting equation remains balanced as the decrease in cash is offset by the increase in the investment account, maintaining the equality of assets, liabilities, and equity.
Debit Withdraw account and Credit Cash
The amount which is paid on account(credit) should be recorded in a liability account i believe while record the purchased supplies in the asset.
-liabilites, +stockholder's equity
by sale on account you mean goods sold to the costumer but the cash was not received immediately. the accounting equation for credit sales is to CR the revenue/sales/turnover in your income statement. DR the receivables account on the balance sheet. after the cash is received. CR the receivables account. DR the cash account.
Construction accounting is simply methods of accounting and finance applied the construction industry. Lots of factors have to be taken into account including labor costs, supplies, equipment etc.
trial balance
This should be recorded in the cash payment journal.
Accounts payable and Cash accounts
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
No bank account is a Personal account in Accounting