Re: Lease program and T-Accounts

Thanks for your reply Troy!! Stupid of me to assume that you post
profit - isn't one of the purposes of double bookkeeping to be able to
see profit through the analysis of the T-Accounts?
Just to make sure that I understand the whole process right , would
this be the order of posts from ordering of stock until writing the
invoice:?

Order of stock (1 item of 1000,-)

Receiving of Invoice
Debitor 1000,- |
Acc Payables | 1000,-

Stock to receive
Payables | 1000,-
Stock to receive 1000,- |

Payment of invoice
Acc Payables 1000,- |
Account | 1000,-

Receiving of stock
Stock to receive | 1000,-
Stock 1000,- |

Invoice generation for lease

D | C
Receivables 50,- |
Creditor | 50,-

Receivement of payment

Accounts 50,- |
Receivables | 50,-

Sales
Insurance 4,- |
Sales 46,- |
Receivables | 50,-

Stock
???

And the lease part we do 36 times and then I can calculate my profit?
Where do I credit the stock when getting the 46,- so that the circle
closes?
Still a bit confusing for me, though interesting.
Thank you for your help,

Nikolai

On Mar 22, 6:29 pm, "Troy Steadman" <troystead...@xxxxxxxxxxx> wrote:
On 22 Mar, 15:26, "Nikolai Onken" <nikolai.on...@xxxxxxxxx> wrote:

Hey,

I am trying to grasp the concept of T-Accounts and start getting it,
though I have a problem making the correct entries for a monthly lease
payment.
The customer pays 50,- to our account. 4,- of the 50,- is insurance -
remaining 46,-. 50% of the 46,- is profit the other 50% pays if the
purchase price of the stock item.
Now her how I would start
D | C
Client | 50,-
Receivables 50,- |

You don't post "profit". Profit is what you hope is left after you
post Income and Expenditure. Rather than "Client" you mean "Sales" or
"Fees" or "Work Done".

On payment
Bank 50,- |
Receivables | 50,-

That's right.

Now how do i deal wit the 4,- insurance and 23,- profit and 23,-
purchaseprice stock? Where do I post these entries, to which accounts?

Would it be something like
Profit 23,- |
??? | 23,-

No, you should have poted that earlier as:

D | C
Normal sales | 46,-
Insurance | 4
Receivables 50,- |

And stock is generally something you can pick up and hold ;)


.

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