Category: Accounting Tutorials

A regular question from new clients is do you pay tax on drawings? The simple answer, for most tax jurisdictions, is no. No income tax is due.

In accounting, a contingent asset is a possible asset the business will receive at some point. But the existence of these benefits and control over them is confirmed by future events. Contingent...

In today's accounting tutorial, the last in our series on balance day adjustments, we will define this type of income and how it fits into the conceptual accounting frameworks. We will then work...

When a business records an expense at the end of reporting period for which it has not received an invoice for nor paid we call this an accrued expense. Under the accrual accounting concept the...

Today's accounting tutorial will look at prepayments, which occur when an expense or income is paid or received before contract obligations are fulfilled. This tutorial will be looking at the...

The accounting for unearned revenue means we recognise a debit to bank and a credit to liabilities. Read more with our full analysis and journal entries.