A complex entry, a bookkeeping term, refers to multiple lines of data with dual entry. It customarily means at least three lines in the journal (sales, cash disbursements, etc.) and can number in the hundreds. It occurs less frequently in small business.
A journal entry with multiple lines of entry affecting several different ledgers (accounts) is commonly referred to as a complex entry. Many bookkeepers shy away from them as they feel intimidated by the difficulty involved and do not want to make an error. This lesson helps the bookkeeper understand how to break the complex entry down into a series of standard entries.
Every now and then management authorizes the purchase of a long-term producing asset. This could be a vehicle, piece of equipment or real estate. These purchases are referred to as fixed assets. Recording of these entries is a little different and this lesson explains the entire recording process associated with fixed assets.
Petty cash is cash kept in the office in a lockbox or with staff for instant and emergency purposes. It is actual cash and not checks. There is a process to keep track of purchases paid with petty cash and to refill the depleted amounts of cash.
Not every customer is satisfied with the product they purchase. The old saying of ‘You can’t please everyone all the time’ is true. This is reality and business management must accept this basic principle. What is important is the trend involved with returns. If they continue to increase from one period to the next, something is amiss.
