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Here Are The Entries Made by AP

The document provides examples of common accounting entries for various transactions in accounts payable, fixed assets, receivables, and purchasing. For accounts payable, it lists entries for invoices, payments, credits, and adjustments. For fixed assets, it outlines entries for additions, depreciation, and retirements under different scenarios. The receivables section details entries for revenue recognition, billings, credits, and adjustments. Finally, the purchasing section lists entries for receiving goods, invoices, payments, transfers, and encumbrances.

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Irfan Mohammad
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82 views4 pages

Here Are The Entries Made by AP

The document provides examples of common accounting entries for various transactions in accounts payable, fixed assets, receivables, and purchasing. For accounts payable, it lists entries for invoices, payments, credits, and adjustments. For fixed assets, it outlines entries for additions, depreciation, and retirements under different scenarios. The receivables section details entries for revenue recognition, billings, credits, and adjustments. Finally, the purchasing section lists entries for receiving goods, invoices, payments, transfers, and encumbrances.

Uploaded by

Irfan Mohammad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Here are the entries made by AP.

Transaction Natural Account Debit Credit


Invoice Accounting (Inv
directly in AP)
Expense $100
Accounts Payable $100
Invoice from Purchasing Accrual $100
Accounts Payable $100
Invoice Cancellation Accounts Payable $100
Expense $100
Payment is made Accounts Payable $100
Cash $100
Void a payment Cash $100
Accounts Payable $100
Pre-Payment is made Prepayment $100
Cash $100
Item is received after Pre-
Payment
Expense $100
Prepayment $100
Debit Memo Accounts Payable $100
Expense $100
Credit Memo Accounts Payable $100
Expense $100


Here are the entries made by FA.
Transaction Natural Account Debit Credit
Asset is added Asset Cost $100
Asset Clearing $100
Asset Depreciation Depreciation Expense $100
Accumulated
Depreciation
$100
Asset Retirement
W/o proceeds and W/o
removal cost
Accumulated
Depreciation
$60
Gain/Loss $40
Asset Cost $100
Asset Retirement
With Proceeds, W/o Cost
of removal
Accumulated
Depreciation
$60
Gain/Loss $40
Gain/Loss $10
Proceeds from Sale $10
Asset Cost $100
Asset Retirement -
With Cost of removal
Accumulated
Depreciation
$60
Gain/Loss $40
Gain/Loss $5
Cost of removal Clearing $5
Asset Cost $100










Simple Accounting Entries in Receivables
Standard Transaction
Receivables a/c Dr
To Revenue a/c Cr
To Tax a/c Cr
To freight Cr
Revenue recognization Invoice with rules (in 1
st period of rule)

Bill in Advance Receivables a/c Dr
To Revenue a/c Cr
To Tax a/c Cr
To freight Cr
In each period when revenue is recognized
Unearned revenue a/c Dr
To revenue Cr
Invoice With rules
Bill in Arrears Unbilled Receivables a/c Dr
To revenue a/c Cr
In each period when revenue is recognized
Receivables a/c Dr
To Unbilled Receivables a/c Cr
To Tax a/c Cr
To freight Cr
Debit memo Entry Receivables a/c Dr
To Revenue a/c Cr
To Tax a/c Cr
To freight Cr
Credit memo Entry
Against Invoice, chargebackRevenue a/c Dr
Tax a/c Dr
Freight Dr
To Receivables a/c Cr
When credit memo adjusted with Invoice, Chargeback,
Receivables a/c Dr
To Receivables a/c Cr
Credit memo against commitmentRevenue a/c Dr
To Receivables a/c Cr
On a/c Credit Revenue a/c Dr
Tax a/c Dr
Freight Dr
To Receivables a/c Cr
Deposit Entry Receivables a/c Dr
To unearned Revenue a/c Cr
Receivables a/c Dr
To Revenue a/c Cr
To Tax a/c Cr
To Freight a/c Cr
Adjustment on Invoice against deposit Unearned revenue a/c Dr
To Receivables a/c Cr
Guarantee Entry Unbilled receivables
To unearned Revenue a/c Cr
Adjustment on Invoice against on GuaranteeReceivables a/c Dr
To Revenue a/c Cr
To Tax a/c Cr
To Freight a/c Cr
Unearned revenue a/c Dr
To unbilled Receivables a/c Cr
Charge back Entry CB Adjustment a/c Dr
To Receivables a/c Cr
CB a/c Dr
To CB Adjustment a/c Cr
Adjustments of Charge back
Positive adjustment Receivables a/c Dr
To Adjustment a/c Cr
Negative adjustmentAdjustment a/c Dr
To Receivables a/c Cr
Posted by Natchirajan Shen

Simple Accounting Entries in Purchasing
At the time of receiving
Material value a/c Dr
To Inventory AP accrual account Cr
At the time of invoice Inventory AP accrual a/c Dr
To AP liability a/c Cr
At the time of Payment AP liability a/c Dr
To Cash Clearing a/c Cr
At the time of Clearing Cash clearing a/c Dr
To Cash a/c Cr
Stock sent to the sub inventory Material a/c Dr
To receiving a/c Cr
Goods in TransitGoods in transit a/c Dr
To Inventory AP accrual a/c Cr
Receiving of Stock Receiving a/c Dr
To Inventory AP accrual a/c Cr
Inspection of stockInspection a/c Dr
To Receiving a/c CR
Material a/c Dr
To inspection a/c CR
Encumbrance for requisition, PO, Invoice PO charge account a/c Dr
To reserve for Encumbrance a/c Cr

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