Handling of the main accounting accounts The majority of productive entrepreneurships, when accounting for their financial transactions, tend to accumulate records in accounts such as: cash, banks, accounts receivable, inventory, fixed assets, depreciation, accounts payable, capital, income, costs and expenses. These accounts belong to the main accounts such as: assets, liabilities, equity, income, costs and expenses. Plan of financial account of a business When the entrepreneur decides to permanently record the financial movements of the business, it is important to structure, in first place, a list followed by its definition of the financial accounts involved. This practice is very useful since the person in charge of keeping the business accounting, finds within the plan of financial account the qualifying group frame. Here are located the accounts that have a direct connection with the financial movement that will be registered. Here we have an example of the pl...
For the exercises below, create the double-entry system according to the accounts involved. Think carefully and analyze each exercise. 1. John is the owner of a fast food restaurant. He buys $50 of potatoes from his supplier. What are the accounts involved? (Use the double-entry system) 2. Peter is the owner of a furniture store. He sales $1200 worth of furniture to a customer. What are the accounts involved? (Use the double-entry system) 3. Mary is the owner of a toy store. She has a loan from the bank. The amount of the loan is $3000. This month Mary pays $200 for the monthly fee to the bank. What are the accounts involved? (Use the double-entry system) 4. Anna is the owner of a pizza restaurant. She uses her personal savings ($4500) to buy an oven. What are the accounts involved? (Use the double-entry system) 5. David is the owner of a sandwich shop. He uses the money from the business ($2500) to buy a new refrigerator. What are the accounts involved? (Use the double-entry system) 6...
Legal and Social Responsibility of the Entrepreneur STR Single Taxpayer Registration (RUC) At the moment of meeting the requirements established by the Ecuadorian legislation, the entrepreneur must obtain a Single Taxpayer Registration (STR) (in Spanish RUC – Registro Único de Contribuyente) as a means of formal recognition of your business. It is like an identification to carry out productive activities, acts to comply the tributary obligations and it is the means used by the tax control authority. According to the Internal Revenue Service (IRS) (in Spanish SRI – Servicio de Rentas Internas), the STR it is a number identification for all the people and societies that make an economic activity in Ecuador. It contains 13 numbers according to the type of taxpayer its composition varies, the STR is usually the citizenship identification number followed by 001. What is it used for? The Ecuadorian tax administration establishes that the STR has as main function the regis...
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