Accounting Treatments | Accounting

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

ACCOUNTING1
Table of Contents
Accounting treatments:....................................................................................................................2
Purchas of goods for cash............................................................................................................2
Providing services for cash..........................................................................................................2
Providing services on account.....................................................................................................2
Purchase services on account.......................................................................................................3
Payment of previously recorded expenses...................................................................................3
Receipts of previously recorded revenue.....................................................................................3
If the above transaction is not recorded and posted.....................................................................4
Bibliography:...................................................................................................................................5

ACCOUNTING2
Accounting treatments:
Purchas of goods for cash
ABC Security Limited purchased security instruments for cash from the BM Equipment
Limited for a cash of $10,000. The evidence required for entering this transaction is the sales
invoice raised by the BM Equipment and the cash receipt issued by them.
To record this transaction Equipment account is to be debited by $10,000 and the cash
account is to be credited by $10,000. Hence, a fixed assets account will be increased and a
current assents account will be decreased.
Providing services for cash
ABC Security Limited provided security services to XYZ housing society on an event for
cash of $5,000. The source document required for recording the transaction is the invoice raised
to the XYZ housing and the cash receipts issued to the XYZ housing.
For the above transaction the cash account is to be debited by $5,000 and the service
revenue account is to be credited by $5,000. Therefore, an assets account will be increased and a
revenue account will be increased in contrast.
Providing services on account
ABC Security Limited provided security services to PQR bank for the month of
December 2019 on account for an amount of $15,000. To record this transaction the invoice
raised to the PQR bank is needed as the evidence.
For the above transaction, the Accounts receivable account is to be debited and the
service revenue account is to be credited by $15,000. Hence, an asset account will be increased
and a revenue account will be increased too.