Okay, I think Im sure how to do this. Im working for a company who has done this all wrong from the get go, so Im here to try to rectify the bookkeeping system.
Mind you Im working with nothing, one company with 2 locations. Bank statements have not been reconciled in 4 months, no journal entries for NP withdrawn from their main checking account.
I know that when you purchase a vehicle or piece of equipment you debit your asset account and credit the NP (Tahoe) for example. Im using fake #'s so here goes.
THey purchsed a vehicle for 32,000
DB Vehicles (assets)
CR NP - Tahoe (long term liabilities)?
Then when you make your monthly payment you debit your NP - Tahoe and CR your bank account (cash)
Am I correct?
Thanks!
:D
