Accounting and Auditing

Drawings Account: Debit or Credit? Personal, Nominal or Contra-Equity? (Settled) First, What Are “Drawings”? Drawings are cash or goods withdrawn by the owner (proprietor or partner) from the business for their personal use. When a sole trader takes $2,000 out of the business bank account to pay a personal bill, or takes goods off the […]

Mastering Net Fixed Assets: The Formula and Real Calculation Examples What Are Net Fixed Assets? When a company buys a machine, a building, or a delivery vehicle, it records that asset at its original purchase price. But as years pass, the asset gets older, wears down, and its value on paper decreases. By the time

Application Controls in Accounting: Definition, Types & Examples What Are Application Controls? Imagine you work at a company that uses accounting software. Every day, your team enters hundreds of transactions sales invoices, purchase bills, payroll entries, bank payments. Now, what stops someone from accidentally entering a negative salary? Or posting the same supplier invoice twice?