Author Archives: CoffeeLander

What is a Trial Balance?

A Trial Balance is a list of all the general ledgers a company maintains and their closing balances on a certain date (month end/year end). Generally: Expenses a/c, purchase a/c, inventory a/c and asset a/c will have a DEBIT closing … Continue reading

Posted in Accountancy | Tagged | Leave a comment

Withholding tax: Meaning | Examples | Journal entries

Withholding tax, also known as retention tax, is a government requirement of holding the taxable amount on income earned not by the recipient of the income but from the payer of such amount. It is a way for the government … Continue reading

Posted in Accountancy | Tagged , , , | Leave a comment

How to prepare Cash Flow Statement using Indirect Method

Indirect cash flow statement is divided into three areas: Operating activities: Cash inflow/outflow from business activities such as sales, royalties, commissions, fines, lawsuits, supplier and lender invoices, and payroll. Investing activities: Cash inflow/outflow from sale/purchase of long term assets (CAPEX/Capital … Continue reading

Posted in Accountancy | Tagged , | Leave a comment

Difference between: Direct AND Indirect methods of Cash Flow Statement

A ‘cash flow statement’, also known as ‘statement of cash flow’, is a part of financial statements that shows how changes in Balance Sheet accounts and Income statement (P&L a/c) affect cash and cash equivalents. A Cash flow statement is … Continue reading

Posted in Accountancy | Tagged , , , , | Leave a comment