Create an Effective Sample Billing Statement Letter for Services Rendered for Support

Sample billing statement letter for services rendered for Support

[Music] students so for today's video we will be learning on the journal entry for the service rendered in cash so the transaction for this uh for the transaction is a transaction for for january 14 2020 the problem is perform consulting services for 10 500 in cash so in this problem the consulting services is the service or the revenue so this is the rare venue so when you perform a consulting services or when you perform a service to your customer your revenue i mean this revenue this revenue this is the revenue will increase okay and then when the revenue increases there is also an increase in cash why because your customer had paid in cash so there is a ten thousand five hundred cash na na illa guys company so the cash is [Applause] also increasing okay so in any of the transactions there is some transactions that um the other tran the other account title is increasing and the other is decreasing but in the same transaction there are also times that um there is in a transaction both of the account titles are all increasing or both of the account titles are all decreasing so for this transaction we will use again we will use your accounting equation assets is equal to liabilities plus owner's equity in this problem we will use the expanded accounting equation which is it contains the revenue and the expense so for this problem we are to use the revenue the revenue which is directly related to your equity your owner's equity and then the cash which is an account title for the asset so we will go back to your normal balances so for the normal balances when the cash is increasing you will put it on the debit side when the owner's equity revenue so it is the owner's equity and the revenue when it is increasing it is on the credit side so as you can see both of the accounts are increasing but they are not on the same side but they are not on the same side they are not both on debit they are not both on credit the accounts are the cash is on the debit and the revenue is on the credit so acquire unbalanced accounting equation which is the body asset is the debit side and this lo our liabilities and owner's equity is on the credit side so now achieve transaction on your owners i mean on your accounting equation so now we will be learning on how you will put it on your general journal this is how you will enter the transaction on your general journal so as always you will write only the day so the day is january 14 is the transaction so this is the transaction so it's a revenue divide the revenue and the cash the revenue and the asset so in this transaction you will use for the revenue you will use the consulting revenue um what is can and being said in the problem is the consulting services so for you to be able to know if na trial balance revenue is type of services offered by the company with the word revenue so consulting services revenue or direct so consulting revenue so for this transaction the debit side would be the cash so the cash is increasing and when a cash is increasing it is an asset it is put on the debit side so you will put the asset on the debit side i mean the cash so you will write the cash so as you can see when you are writing it properly it is gonna very good to see the alignment of each of the accounts you are writing as well as the um explanation so if you are a bookkeeper if you are an accountant when the owner of the company would likely to read to read your um journal entry so okay next account that you will be using as i've said when a revenue is increasing it is put on the credit side and the account that you will be using for the revenue is the consulting revenue it is because the company is providing consult consulting services to its customer now you will write your explanation for the explanation as i've said many times is problem so the explanation would be to record the consulting [Music] services [Music] rendered in cash okay you will always put in cash the same with this problem you are writing ka in cash and with this problem you are writing also in cash because nagi if this transaction is in cash or in credit okay for the amount directly you will you will see in the problem the amount it's ten thousand five hundred so for the credit side linearity cash you will write the ten thousand five hundred and then for the debit side the consulting revenue you will write it on the credit side ten thousand five hundred so this is your journal entry for the um services rendered in cash so i hope you learned something on today's video i hope it helped you a lot thank you for watching see you in the next video goodbye [Music] you