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Hello!
Suppose "My Firm" receives 100K USD in its bank account from "Outsider", where 5K are revenues, and the remanent 95K are to be transferred to an exchange.
Basically, "My Firm" provides a service that it receives USD and converts them into another currency, earning a little % on the service conversion, that is to sit in the bank account.
I have some doubts about the journals:
"My Firm"
Bank account(asset)........ 100K DR
??? (asset)......................................100K CR
Bank account(asset)........ 95K CR
Exchange(asset)......................................95K DR
Bank account (asset)........ 5K DR
Revenue (Income)......................................5K DR
I don't think the above is right because the 5K are supposed to remain in the bank account
What confuses me is how to record the revenue separately, since the bank account should remain with 5K.
Suppose "My Firm" receives 100K USD in its bank account from "Outsider", where 5K are revenues, and the remanent 95K are to be transferred to an exchange.
Basically, "My Firm" provides a service that it receives USD and converts them into another currency, earning a little % on the service conversion, that is to sit in the bank account.
I have some doubts about the journals:
"My Firm"
Bank account(asset)........ 100K DR
??? (asset)......................................100K CR
Bank account(asset)........ 95K CR
Exchange(asset)......................................95K DR
Bank account (asset)........ 5K DR
Revenue (Income)......................................5K DR
I don't think the above is right because the 5K are supposed to remain in the bank account
What confuses me is how to record the revenue separately, since the bank account should remain with 5K.
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