--> Decrease in Assets Cost of Merchandise Sold account balance increases by $5,000. The Accounting Equation, Assets = Liabilities + Owners Equity means that the total assets of the business are always equal to the total liabilities of the business This is true at any time and applies to each transaction. Journal Entry to Record a Sundry Expense. They are usually infrequent, considerably low, miscellaneous in nature & are not classified under a … Payments by cash and cheque are cash entries. --> Increase in Expense 10,000 and above will qualify for a trade discount of 6%. Paid for office expenses journal entry 2 See answers dharman565 dharman565 Answer: There are two high-level approaches: ... Sundry debtors Rs 10.600, Sundry creditorsRs.3.000, fumiture Rs.5.000: Stock R$ 3.000LThe following balances existed on 31-12-2008 Sundry debtors. So we need to make accounting entries for $10,000 each year. To accomplish this, we need to make an entry to account for depreciation. Final Thoughts. Vehicles are usually afforded a five year life. On 5 th February 2019, Sports international ltd purchased the raw material worth $5,000 from smart international ltd on the account and promised to pay for the same in cash on 25 th February 2019. These should be entered in cash book. Results of Journal Entry Merchandise balance decreases by $5,000. From source documents the transactions are recorded in prime entry books. To journalize paying a bill in accounting, you need to know the basics of double entry accounting and an understanding of how the transaction affects the various accounts in your chart of accounts. Journal Entry for Outstanding Expenses. In the journal entry above, an expense has to be recorded to show the loss. Cash Book and Journal(book) are both prime entry books. The Journal Entries that are typically used to record the accounts payable are as follows: Accounts Payable Journal Entries – Example #1. ... "Prepaid expenses" are also known as "expenses paid in advance." Sundry Expenses are a regular business expense line item found in the Income Statement of all organization. Outstanding expenses are those expenses which are due in the current accounting period but not paid.The benefits of such expenses have been consumed although due to some reason they are not paid until the end of the accounting period. ... All sales with cash payment will be given 5% discount and all sales of Rs. The accounting entries for the first year would be as follows: Debit: Depreciation Expense – $10,000.00; Credit: Accumulated Depreciation – $10,000.00 An amount of £92 has been debited to the sundry expenses account instead of the heat & light account. For this transaction the Accounting equation is shown in the following table. Some insurance payments can go on to the Profit and Loss Report and some must go … A payment to a trade creditor has been entered into the purchases ledger control a/c and cash book as £1,420 instead of £1,240. The Accounting Equation. Sundry expenses are costs incurred for small things which can not be categorized under a specific heading. Its purpose is to club together all irregular, infrequent, and random nature expenses that can’t be classified under any regular business expense … You record the bill or invoice by debiting an asset or expense account, and credit accounts payable. The word "Sundry" is used for items which are not important enough to be mentioned individually. 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