Discover a Paid Invoice Example for Accounting that Simplifies Your Workflow

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Paid invoice example for Accounting

Managing invoices efficiently is crucial for any accounting process, especially when aiming for clarity and organization. A paid invoice example for Accounting can simplify tracking payments and maintaining records. With airSlate SignNow, not only can you streamline your document signing process, but you can also enhance overall productivity. Here's how to get started.

Paid invoice example for Accounting

  1. Visit the airSlate SignNow website using your preferred web browser.
  2. Create an account for a free trial or log into your existing one.
  3. Upload the invoice document you need for signing or dispatching.
  4. If you plan to use this document again, consider creating a template.
  5. Access your document to make necessary adjustments, adding fillable fields and pertinent information.
  6. Sign the document yourself and incorporate signature fields for additional signers.
  7. Click on 'Continue' to configure and dispatch an eSignature invitation.

Utilizing airSlate SignNow presents a multitude of advantages, such as signNow returns on investment through an expansive feature set relative to costs. It's designed to be user-friendly and scalable, particularly beneficial for small to mid-sized businesses.

Moreover, airSlate SignNow encompasses transparent pricing, devoid of concealed charges for support or add-ons. Additionally, it offers top-notch 24/7 customer support for all paid tiers. Start optimizing your invoicing process today by signing up for airSlate SignNow.

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Paid invoice example for Accounting

hey Scholars welcome back to this video this is second video for your practice questions so let's begin our question number nine and this is one of the most important questions in terms of trickiest questions the selling price of inventory is given to you $268,000 and the company makes a markup its goods by 34% so you need to understand the difference of markup and margin I think you already have gone through this topic so markup is the profit percentage taken on the basis of cost so it mean if your cost is 100% that's the base value and your profit is 34% your selling value is 134% and this selling value is already given to you so now you need to solve it this is selling price the company makes a mark up 34% obviously when you are going to calculate the cost of goods sold the selling value is known to you 268,000 is at 134% you can divide it by 1.34 or you can just divide 134% multiply by 100 or you can just do this shortcut 268,000 divided by 1.34 because you want to know the cost of this and this cost of this is 100% so the cost of this value is $200,000 we calculated the cost of good sold from given selling value and now one quarter of the inventory mean this is the total inventory cost one quarter of this which is 25% and that becomes 50,000 you can calculate 200,000 time 25% it is one quarter but remaining one is 75 5% which is 150,000 take the difference of 200,000 and 50,000 so this is the remaining value good value of inventory 75% okay this ISS one quarter of the inventory has been damaged in the flood and will be sold out for $119,000 which of the following will be correct value for closing inventory at 28th February in the statement of financial position so we have no doubt that we have good inventory with us 150,000 there is no problem in this type of inventory but the problem occurs this inventory has been damaged and the cost of this inventory was 50,000 but it's NRV mean net realizable value is given to you means its selling value is given to you 19,000 ing to the Prudence principle the cost of inventory and the lower of these NRV and cost whichever is lower we will take that into consideration 50,000 is not lower value 19,000 is lower value if you add 19,000 with the good inventory and this 19,000 is coming from the rule of prudence the cost of inventory and NRV whichever is lower we will calculate this into calculation of total inventory so total inventory becomes 169,000 the answer is C I hope that you understood the trick in this type of question what you need to do if the selling price is given to you you need to just calculate the cost by using this formula markup and margin formula once you are done with the calculation of cost of good sold this is entire inventory cost out of which one quarter was damaged but 75% was not damaged take that 75% as it is but we can just compare the value of cost of 25 % and NRV of 25% whichever is lower and then we finally found our answer 169,000 so let's go to question number 10 here we go question number 10 says in the context of financial accounting which of the following is not a characteristic of an asset by the way students you need to understand the meaning of an asset just to clarify your doubts assets are considered the financial resources is controlled by an entity as a result of any past event or any past transaction and future probable benefits are associated with these resources or you can say future economic benefits are probable to flow to the inventory so I repeat my words assets are the economic resources which are controlled by an entity as a result of any past event and any future economic benefits will probably flow to the entity now I gave you three words future probable benefits this is characteristic controlled by a business this is characteristic as a result of past transaction this is characteristic but point B is not coming under the characteristic of an asset because I told you asset are the economic resources controlled by an entity because I don't want to go into more details controlled by an entity means let's suppose you are having Leed as Lee asset and majority life of the lease asset is under your control that becomes your asset right so the final definition of asset is an economic event an economic resource which is result of a pass event and controll by an entity and future economic benefits will probably flow to the entity that's it so that is not a correct istic of an asset number 11 most important question in terms of its calculation because so many calculations are involved in this so let me make it Zoom here on 1 January 2018 the equity of company 5 was as follows share Capital 150,000 shares were already issued we call them outstanding shares this is 150,000 shares already outstanding and one share was having par value 50 cents and in this way your total existing share Capital was 75,000 share premium which was result of issuance of share at more than power value was 145,000 then revaluation Reserve then we have retain earnings and collectively we have honors Equity 460,000 pound sorry dollars on that day company made a right issue issuing 120,000 shares for 7.5 each okay so you can just calculate 120,000 shares was issued at 7.5 it mean out of 7.5 0.5 is the power value which will be directly influencing the share Capital 60,000 will increase your share capital and 125,000 multip by 7 this is going to give you $840,000 so this is going to be inclusion of your share premium so share premium updated value would be 140,000 plus 145,000 so total share premium is going to be $985,000 so that is your updated share premium value after you issue right shares and updated share Capital would be 60,000 this one and already we have 75 so 75 + 60 so your total share Capital becomes 135,000 so far okay let me go further and then they Issue four bonus shares for one already held okay here we go they say we have issued four bonus shares for already who is having one existing out in shares but we know we need to know how many outstanding shares we have already so we have 150,000 this one and 120,000 issued as a result of right shares so 150,000 plus 120,000 so total number of issued Shares are 200 70,000 shares and one bonus share will be given to those who has already four bonus shares will be given to those who has already won share so it mean total number of bonus shares will be 10 sorry 10 180,000 I'm using my calculator 10 180,000 will be bonus shares now the question is how this bonus shares will be accounted for and from where we will take the money so if you look into the question statement the company offsets the bonus issue against the valuation reserves to the extent that is possible okay here we go we have the revaluation reserve of only $30,000 so we need to calculate how much money to be used in the bonus calculation so we have $180,000 bonus shares multiplied by one share costing us 0.5 so this is G going to give us I'm using my calculator so I need to know that yeah $540,000 are needed to cover the bonus issuance but the question is from where we will use this $540,000 first of all they said we need to use revaluation Reserve so revaluation Reserve will be fully utilized means 30,000 will be fully utilized and we are left with 510,000 okay but now the question is from where we will cover this 510,000 obviously our last result is retain earning but before retain ear we have share premium the updated balance of share premium is $985,000 so if we use 9855 our retained sorry share premium balance we can use 510,000 from there and then we will be left with 475,000 share premium with us 475,000 510,000 is taken from retain sorry share premium and then we are covering with our bonus issued okay final value left with us from Reserve sorry uh share premium is 475 so 475 is option D but option b is also possible but but we have to see how much is our share Capital now previously we issued 150,000 shares in the beginning then 120,000 shares in the next uh as a right share and then 108,000 shares as a bonus share so total number of shares become let me use my calculator the total number of shares are one 1,350,000 number of shares and each share is costing us 0.5 so it gives us $675,000 that is our updated balance of share capital and share premium was initially just 145 we increased the share premium to 985 we reduce the share premium by 510 because it will be used for the bonus calculation and the last value of our share premium would be 475,000 this was little bit tricky question but if you use your tricks step by step it will be very easy question now the answer is D answer is d so option b is correct answer means option D is correct answer next question this involves the acral application acral system company 7 has made the following payments for invo issued by local water supplier in 15 months 1st February 2017 to 30th April 2018 so here we have the data from 1st February till 30th April the next year the company received these water invoices these are the invoices received periodically within two weeks of the end of the period for which they relate okay and then paid those invoices within one week of receiving them fine what will be the expense appearing in company's income statement for the year ending 31st March students you need to understand if the year is ending 31st March then year is starting from February 2017 till 30th 31st of March 2018 if the year is ending at 31st of March it mean the year was started at 1st February so we have been given these advices we need to know how much cost belongs to this period ending at 31st March this is the closing date and opening date ing to the year ending must be 1st February 2017 now you can see this invoice starting from 1st February 2017 till 30th of April 2017 we need to account for 450 is not for entire year we need to divide it from February March April it it contains 3 months we need to have only one month because uh yeah it would be starting from 1st April sorry not 1 February so it would be starting from 1st April till 31st of March so 1 April would be the first month in this question okay out of this 450 we will divide this by 3 month and it will be 150 we will be using only for April because the our year is starting from 1 April so 150 will be taken into consideration 425 will also be taken into consideration because this belongs to this period 395 will also be taken into consideration because this belongs to 2017 year 2017 and 425 will also be taken into consideration or calculation because this belongs to this year ending at 31st March 2018 however there is a point 400 80 is the expense starting from 1 Fe till 31st of April we are ending our year at 31st March so it mean February and March will be taken into consideration divided by three it will give you one month how much is the one month 120 so 100 sorry 160 160 is for one month and we need to take two months because February and March will be taken into account so it is going to give us 320 if you add all these expenses now it becomes the expense of the Year ending at 31st March starting from 1st April 2017 so we are acre me and we are using acral accounting and the total of all these will be $1,715 that's the answer is B so B is the correct answer I hope you understood this question

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