Accounting for Withholding Tax – Definition and Example
Withholding Tax is used in many tax jurisdictions as an efficient means of tax collection. It is efficient in that tax authorities are able to collect as taxable events take … Read More
Effective Interest Method – Analysis and Example
In our article that discussed how costs incurred in the issuing of debt should be accounted for we used the effective interest method in our example. Today we are coming … Read More
Debt Free Stories – Are They Really?
A lot of our personal finance blog series is about debt and in particular how to become debt free. This is in large part a reflection of our debt free … Read More
What is the Purpose of the Statement of Owner’s Equity
The purpose of the statement of owner’s equity is to reflect the changes in owners contributions and withdrawals, movements in reserves and the business’s profit or loss over time. The … Read More
Accounting for Sales Tax – Journal Entries
Many tax jurisdictions have a form of sales tax, which is a tax on the final customer of the good or service. In affect businesses collecting this tax are agents … Read More
Journal Entry For Interest on Drawings
Drawings are the withdrawal of capital from a business by an owner. In this article we are going to look at a simple example and the journal entry required to … Read More
Ways to Control Spending – Three Suggestions
Like a lot of problems in personal finance the ways to control spending are almost unlimited; the reason being all of our circumstances are unique. Our personalities are different, our … Read More