Definition When you have expenses with a vendor, you may be recording them with a Purchases Journal. The Purchases Journal is a specialized type of bookkeeping log that keeps track of orders made by a business on credit or on account. It should be noted that cash purchases of merchandise are not tracked in the Read More
Double-entry accounting plays an important role in the way bookkeepers record each and every transaction. Based on this equation, each account in the general ledger has a debit or a credit normal balance, which is used to identify whether an account should be debited or credited to increase its balance. An exception to the rule Read More
Bookkeeping requires one to know many terms and rules. Contra accounts are special accounts that are established by company bookkeepers to decrease the balance in another account indirectly. Although most of them are used very rarely in bookkeeping practice, they are an important part of bookkeeping records. They allow to preserve the identity of the Read More
The meaning of normal balance in accounting is something one would learn at the very beginning of their bookkeeping and accounting studies. Let’s find out what it is all about and what role it plays in bookkeeping records. Definition Normal balance is defined as the increase side of a bookkeeping account. Depending on its classification, Read More
Primary accounting, or posting, is the initial stage of system perception of registration in the book of individual operations that characterize economic processes and phenomena occurring in the organization. Its objects are procurement, acquisition, and expenditure of material resources, production costs, movement of semi-finished products and remnants of work in progress, the volume of output, Read More
