Form 3

Depreciation Cost of a Fixed Asset Determine the cost of a fixed asset Depreciation is the systematic reduction in the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, leasehold improvements, and office…

Capital Expenditure and Revenue Expenditure Meaning of Capital Expenditure and Revenue Expenditure Give the meaning of capital expenditure and revenue expenditure Capital Expenditure Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures…

Adjustments Adjusting entries are accounting journal entries that convert a company’s accounting records to theaccrual basis of accounting.An adjusting journal entry is typically made just prior to issuing a company’sfinancial statements. The Reasons Why the Life of a Business is…

Correction of Errors Wrong Entries Identify wrong entries An accounting error is a non-fraudulent discrepancy in financial documentation. The term is used in financial reporting. Types of accounting errors include: Accounting errors can occur in double entry bookkeeping for a…

General Journal The Purpose of General Journal Explain the purpose of the General journal You are an accounting student; you do not need to be told just how difficult accounting can be. Accountants analyze business transactions and record them in…