Accounting Blog

Purchases Journal: Definition and Example

Purchases Journal: Definition and Example

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
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What is a Contra Asset Account? Simple Explanation and Example
Contra Accounts. What is a Contra Revenue Account?

Contra Accounts. What is a Contra Revenue Account?

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
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Accounting Concepts: Normal Balance

Accounting Concepts: Normal Balance

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,
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Posting in Accounting

Posting in Accounting

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,
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