Common Accounting Heads
- Accounting Charges.
- Audit Fees.
- Bank Charges.
- Conveyance Exp.
- Depreciation.
- Newspaper Exp.
- Salary & Wages.
- Electricity & Water Exp.
What is journal entry?
A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.
What are medical expenses?
What Are Medical Expenses?
- Medical expenses are the costs to treat or prevent an injury or disease, such as health insurance premiums, hospital visits, and prescriptions.
- These expenses are tax-deductible within certain limits.
What are various heads in accounting?
There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories.
What is the difference between major head and minor head?
The Major Heads corresponds to ‘Functions’ of the Government. Minor Heads subordinate to the Major Head shall identify the ‘Programme’ undertaken to achieve the objectives of the function. The sub head below the Minor Head represents various schemes or activities under the programme.
What are direct expenses examples?
Examples of direct expenses
- raw materials.
- sales commissions.
- manufacturing supplies.
- direct labor.
- customer service.
- purchase of goods to be sold.
- transit of goods from the supplier.
What is Ledger head?
A ledger is the actual account head to identify your transactions and are used in all accounting vouchers. For example, purchase, payments, sales, receipts, and others accounts heads are ledger accounts. Without a ledger, you cannot record any transaction.
Under which head does the salary account comes under?
Salary Account is generally indirect expense because it cannot be conveniently allocated to a particular product.
How many types of ledger groups are there?
Predominantly there are 3 different types of ledgers; Sales, Purchase and General ledger. A ledger is also known as the principal book of accounts and it forms a permanent record of all business transactions.
Is power a direct expense?
Direct expenses can be allocated to a specific product, department or segment. Indirect expenses are usually shared among different products, departments and segments. 5. Examples – Direct labour (wages), cost of raw material, power, rent of factory, etc.
What is balance sheet format?
The two most common formats of reporting the balance sheet are the vertical balance sheet (where all line items are presented down the left side of the page) and the horizontal balance sheet (where asset line items are listed down the first column and liabilities and equity line items are listed in a later column).