Because it's a form of debt. All debts are entered in the credit side of a journal.
Hi, There is no journal entry for cash shortage as you can never have money less than 0. However if the credit side of the ledger is more than the debit side of the Cash book, the entry passed is Cash/Bank A/C dr......To Bank Overdraft A/C.
This kind of journal entry is called contra entry in which at both sides that is at debit side and credit side cash or bank is used.
In a trial balance, a bank overdraft should be recorded on the credit side as it represents a liability for the bank account holder. It indicates that the account holder has withdrawn more money than is available, resulting in a negative balance. This liability reflects the amount owed to the bank and should be included under current liabilities in the financial statements.
A journal debit is an accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is recorded on the left side of a journal entry and reflects the outflow of resources or the recognition of costs. In double-entry accounting, every debit must have a corresponding credit entry to maintain the accounting equation.
what do you mean by increased side? it depends on which account you are talking. in bookeeping entries of a company a credit on its bank account means money going out the business. in a reserve account it means money being added to the reserves! If on the other hand you are talking about a bank account (personal) this normally means depositing.
credit side
Hi, There is no journal entry for cash shortage as you can never have money less than 0. However if the credit side of the ledger is more than the debit side of the Cash book, the entry passed is Cash/Bank A/C dr......To Bank Overdraft A/C.
This kind of journal entry is called contra entry in which at both sides that is at debit side and credit side cash or bank is used.
Bank overdraft is shown in balance sheet either as a negative amount of bank in asset side or at liability side of balance sheet.
In a trial balance, a bank overdraft should be recorded on the credit side as it represents a liability for the bank account holder. It indicates that the account holder has withdrawn more money than is available, resulting in a negative balance. This liability reflects the amount owed to the bank and should be included under current liabilities in the financial statements.
Yes, bank overdraft is an expense and is shown in debit side of the Profit & Loss A/c. It's also a liability and is shown in 'Liabilities' of the Balance Sheet of an individual or a company.
VAT stands for value added tax. it is simply a form of compensation tax. Let suppose a firm paid $ 30,000.00 to the government under the head of value added tax on 30th June 2010. The journal entry will be as follow: DR: Value Added Tax (VAT) Account $ 30,000.00 CR: Cash / Bank Account* $ 30,000.00 * If payment is made by cash, then Cash Account will be written on the credit side. And if bank draft or cheque is paid, then Bank Account will be written on the credit side.
It depends which side of the equation you're on: someone making money from copyright, or someone paying for a license.
revenue is shown under credit side of income statement while capital expenditures are shown in balance sheet and shown under asset side.
There are no known side effects of journal or writing therapy.
A journal debit is an accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is recorded on the left side of a journal entry and reflects the outflow of resources or the recognition of costs. In double-entry accounting, every debit must have a corresponding credit entry to maintain the accounting equation.
what do you mean by increased side? it depends on which account you are talking. in bookeeping entries of a company a credit on its bank account means money going out the business. in a reserve account it means money being added to the reserves! If on the other hand you are talking about a bank account (personal) this normally means depositing.