Transaction - Journal

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CHONG CHENG SING

• January 29, 2019 15:55

Hi Travies,

 

Please advise how to input the following transactions in the journal:

1) Sold tyre for cash RM 4000.

2) Sold tyre to John RM 5000.

 

Should I categorise the sales as income or just as cash in current asset?

Chong

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• Official comment

  

  Benjamin George

  • January 30, 2019 03:18

  Hi Chong Cheng Sing,
  
  Financio does the double-entries for you. Based on your example:

  "Sold tyre to John RM 5000."

  You may use the deposit function to record this if you are not issuing an invoice.

  1) Select the contact "John" under Payment From.
  2) Payment Method in this example would be Cash.
  3) The cash received will be placed in my Cash on Hand account which is selected in the Deposit To field.
  4) Finally, under the Item Lines, select either the product or services sold or the category you'd like to have this income recorded in. In this example, we'll use a general Sales Income category.
  5) Lastly, select Save & Approve.

  

   

  If you need to review how this is recorded, you may select the Show Journal Entries option found on the top right corner

  

  In this example, you'll see that based on your inputs, Financio Debits: Cash on Hand; Credits: Sales Income.

  

  Hope this helps! 

  Regards,
  Travis Tai - Community Manager

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  Benjamin George

  • January 30, 2019 02:44

  Hi Chong, 

  I think the right method is to record it as a sales income as this will reflect on your P&L report. Hope this helps address your concern.

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  CHONG CHENG SING

  • January 30, 2019 03:01

  Hi Benjamin,

  I also think in that way.

  But won't it be contradict with the real account's golden rule of debit what come in and  credit what go out?

   

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  Benjamin George

  • February 08, 2019 00:55

  Hi Chong,

  Yes, you are right. It's just that Financio does all the double entries for you based on the example provided above. If it's an Income/earning you may record it as a deposit and if it is a purchase/expense you may record it as Withdrawal. 

  hope this helps,

  Thanks,

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