Typical Transaction 20
Example: New unit sale price 60,000
Accounting procedure is as follows:
> First, in TT19 enter “New Price”: 60,000
> Second, click “Apply Change”
> First, in TT19 enter “New Price”: 60,000
> Second, click “Apply Change”
The entries for this transaction in the Accounting System can be seen here, in the AccountingLab and in the Accounting System, Operation O46, Q2:
| Recognise Revenue from Sale of Licenses | Increase in Debtors (+) |
|---|---|
| Increase in Retained Earnings (+) |
> Enter new addition to Debtors and Prepayments: 120,000
> Double entry: Debit entry Debtors and Prepayments balance augments by 120,000
> Retained Earnings augments by 120,000
> Values in red show Balance Sheet values before and after changes
> Double entry: Debit entry Debtors and Prepayments balance augments by 120,000
> Retained Earnings augments by 120,000
> Values in red show Balance Sheet values before and after changes
| Balance Sheet | ||
|---|---|---|
| Original | After Changes | |
| Assets | ||
| Current Assets | 767,850 | 887,850 |
| Bank | 758,550 | 758,550 |
| Debtors and Prepayments | 9,300 | 129,300 |
| Other Current Assets (Stock) | 0 | 0 |
| Fixed Assets | 44,000 | 44,000 |
| TOTAL ASSETS | 811,850 | 931,850 |
| Liabilities | ||
| Current Liabilities | 44,300 | 44,300 |
| Creditors | 44,000 | 44,000 |
| Accruals | 300 | 300 |
| Long Term Liabilities | 0 | 0 |
| Long Term Loan | 0 | 0 |
| Equity | 767,550 | 887,550 |
| Shareholders’ Equity | 800,000 | 800,000 |
| Income Statement | -32,450 | 87,550 |
| TOTAL Liabilities + Equity + Retained Earnings | 811,850 | 931,850 |