accounting

advertising

-selling and distribution

-expense

-naturally debited 

freight outwards

-selling and distribution

-expense

-naturally debited

doubtful debts

-selling and distribution

-expense

-naturally debited 

electricity 

-general and administrative

-expense

-naturally debited

-can be an asset if prepaid 

insurance

-general and administrative

-expense 

-naturally debited

wages

-general and administrative

-expense

-naturally debited

interest

-financial expense

-naturally debited

bank fees

-financial expense

-naturally debited

unearned income

-current liability

-naturally credited

accured income

-current asset 

-naturally debited

depreciation

-expense

-wear and tear of a non-current asset

-naturally debited

doubtful debts

-expense

-debtors that are unlikely to pay their accounts

-naturally debited

prepaid expenses

-current asset

-naturally debited

-business has already paid for it

accured expenses

-current liability

-the business must transfer money to pay for the expense

-naturally credited

office equiptment

-non-current asset

-general and administrative

-naturally debited

fixtures and fittings

-non-current asset

-furniture, computers ect.

-naturally debited

discount recieved

-income

-naturally credited

-when the buyer is granted a discount by the seller

discount allowed

-expense for the seller

-naturally debited

-when the seller grants a discount for the buyer

interest on a loan

-financial expense

-expense

-naturally debited 

cost of sales

-expense

-naturally debited

gross profit

Net sales-cost of goods sold (COGS)

net sales 

Total sales - returns - discount allowed

cost of goods sold (COGS)

all the direct costs of producing or acquiring the goods that were sold

eg. direct labour, manufacturing costs

Profit (net profit)

gross profit - all other expenses

accounts receivable

-current asset

-naturally debited

accumulated depreciation

-total depreciation expense that has been recognized for an asset since it was put into use

-credited

capital 

-financial resources used by a business to operate, grow, and generate profit

-equity

-naturally credited

drawings

-negative equity

-debited