M
Murtadha
Hello,
This is my first post here. I have been trying to record a series of transactions and my thoughts are all over the place.
Appreciate receiving help with the following transactions in the form of the relevant accounting entries needed to accurately reflect the transactions in Zoho Books, unless otherwise stated.
1. Shareholder A provided the company with a loan amount US$5000.
No help is required here.
2. Shareholder A decided to purchase a computer using the Company's credit account with a retailer on an installment basis. Computer cost is US$999.
Help required here. Should I deduct the US$999 from the outstanding loan balance and create a new liability account for the computer? Please read on to have a better understanding of the entire situation.
3. Shareholder B paid a downpayment of US$50 at the retailer.
Help required here. Shareholder B Loan Account increases by US$50, should anything be recorded in the new liability account?
4. The retailer is invoicing the company on a monthly basis for services + the computer's monthly installment amount.
Help required here.The retailer's invoice is captured under 'Bills'. Should I create two separate bills, one for the services and another for the computer's monthly installment or keep both together? Please read on to have a better understanding of the entire situation.
5. The Company pays the full monthly invoice using bank transfer.
Help required here. The amount is directly deducted from the Company's bank account, however, the US$999 outstanding loan balance should also be reduced by the monthly installment, right? If so in what way?
For audit purposes, I understand that there should be a series of transactions that occur in the background between the account. Appreciate any help from experts with this.
Thank you in advance.
M
This is my first post here. I have been trying to record a series of transactions and my thoughts are all over the place.
Appreciate receiving help with the following transactions in the form of the relevant accounting entries needed to accurately reflect the transactions in Zoho Books, unless otherwise stated.
1. Shareholder A provided the company with a loan amount US$5000.
No help is required here.
2. Shareholder A decided to purchase a computer using the Company's credit account with a retailer on an installment basis. Computer cost is US$999.
Help required here. Should I deduct the US$999 from the outstanding loan balance and create a new liability account for the computer? Please read on to have a better understanding of the entire situation.
3. Shareholder B paid a downpayment of US$50 at the retailer.
Help required here. Shareholder B Loan Account increases by US$50, should anything be recorded in the new liability account?
4. The retailer is invoicing the company on a monthly basis for services + the computer's monthly installment amount.
Help required here.The retailer's invoice is captured under 'Bills'. Should I create two separate bills, one for the services and another for the computer's monthly installment or keep both together? Please read on to have a better understanding of the entire situation.
5. The Company pays the full monthly invoice using bank transfer.
Help required here. The amount is directly deducted from the Company's bank account, however, the US$999 outstanding loan balance should also be reduced by the monthly installment, right? If so in what way?
For audit purposes, I understand that there should be a series of transactions that occur in the background between the account. Appreciate any help from experts with this.
Thank you in advance.
M