Buy More Notebooks - Fundamentals of Accounting 1

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OTHER VALUES AFFECTING THE CAPITAL
   4. Income - these are accounts used to record transaction involving earning of income from the rendering of services or from sales. It increases the capital.
   • Sales or Merchandising Sales - this represents the total sales price of the merchandise sold.
   • Revenue Form Fees - this is the appropriate title for use by professionals like doctors, lawyers, accountants, engineers, etc. in the excercise of their profession-amounts earned for professional services rendered are credited to this account.
   • Rent Income - this is the rental earned on the properties of the business.
   • Service Income - this is the appropriate title for income of enterprise selling services instead of merchandise.
   • Interest Income - this is the amount earned for the lending of money.
   5. Expenses - these are the accounts used to revord transactions involving payments for expenses incurred. They decrease the capital.
   • Salaries Expenses - wages of employees connected with the administrative phase of the business.
   • Commission Expenses - compensation granted to employees are usually computed or based on the amount of their sales.
   • Travelling Expenses - allowance given for travel transactions.
   • Postage and Communication Expenses - expenses of postage and other means of communication.
   • Taxes Expense - amounts if taces incurred.
   • Utilities Expense - costs of lights and water consumed by the business
   • Insurance expense - premiums or insurance policies paid and incurred by the business.
   • Repair and Maintenance Expense - expenses for repairing or servicing the buildings, machineries and equipment of the business.
   • Rent Expense - amounts paid or incurred for the use of property usually premises.
   • Interest Expense - sum added to the principal of money obligations.
   • Advertising Expense - these include promotional expenses in the connection with the propagandizing of the products.
   • Depreciation - with the pasaage of time, all plant assets with the exception of lan lose their capacity to yield services.
   • Miscellaneous Expense - expenses incurred other than those given above.

CHART OF ACCOUNTS