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Bookkeeping

An Overview of Contra Revenue

Contra revenue is the amount that an accountant would deduct from the gross revenue of a company to calculate the net revenue that it has earned. In other words, to calculate contra revenue, you should deduct your net revenue from the gross revenue. If you outsource your accounting (Also see Types of Accounting That You […]

Bookkeeping

The Difference Between Revenue and Retained Earnings

Revenue and retained earnings are two terms that one will usually see when reading the financial statements. Revenue forms an important part of the income statement, and it will also appear in the company’s balance sheet. Retained earnings, on the other hand, is the bottom line of an income statement and the accountants from an […]

Bookkeeping

What is a Company Constitution in Malaysia?

According to the Companies Act 1965, all companies need to have an M&A (Memorandum and Articles of Association). Under the Companies Act 2016, the company constitution has taken the place of M&A. Thus, now, the M&A is known as the constitution as a whole. If you want to incorporate a company and you require a […]

Audit

The Pros and Cons of an Inventory Audit

An inventory audit is a process of assessing the methods that a company uses to record its inventory by using various analytical procedures. This is to ensure that the company has recorded its inventories properly in its books of accounts. Also, it makes sure that the records are the same as the physical count of […]

Bookkeeping

Types of Accounting That You Should Know

Some people may think that accounting is all about recording transactions and calculating figures. This is just a tiny part of the use of accounting. In fact, there are many types of accounting, and they serve different purposes. Business owners can choose the types of accounting that their companies would use based on the scope […]

Bookkeeping

Three Different Types of Accounting

Thanks to the industrial and economic developments, accounting has been getting more and more specialised until it is split into many different categories. Among various types of accounting, there are some that the accountants from the accounting firms in Johor Bahru would use frequently, which include financial (Also see Steps of a Financial Statement Audit) […]

Bookkeeping

What are the Types of Company Limited by Guarantee?

Companies limited by guarantee (CLBG) refer to public companies that are incorporated under a condition where the company constitution limits their principle liability (Also see Balance Sheet – Liability and Shareholders’ Equity Accounts) of their members to an amount that their members can undertake to contribute to the company’s asset (Also see Disposal of Fixed […]

Bookkeeping

What Are the Types of Revenue Accounts?

Revenue refers to the income that a company has generated from its normal business operations. Its amount will appear in the top line of a company’s profit and loss statement, and to determine the net income (Also see Can You Differentiate Net Income and Net Sales?) that the business has earned, business owners should subtract […]

Bookkeeping

How to Calculate Capital Expenditure?

Capital expenditures refer to the expenses (Also see What Do You Need to Know About Ordinary and Necessary Business Expenses?) that a company has capitalised. These are the expenses (Also see An Overview of Revenue Expenditure) spent to acquire or build the assets the company requires. This type of expenditure will appear in the company’s […]