JSS (Job Support Scheme) is a cash grant given by the government to offset part of the local employee wage costs during the outbreak of COVID-19.
If you are using MoneyWorks accounting software:
There are two income account types (Sales and Income) in MoneyWorks. The Sales account type is a trading income, whereas the Income account type is for capturing non-trading income such as interest income or cash grant received. The Income account (a.k.a. Other Income) presented after the gross profit of the Profit and Loss report (You can have a custom report if you prefer to change the default presentation).
Create an Income account and name it as JSS (or Job Support Scheme if you preferred). Then, use a receipt transaction to record the cash grant received from the government (IRAS), the entry debits the Bank account and credit the JJS income account.
if you are using QuickBooks accounting software:
QuickBooks uses the Income account type for trading income and Other Income account type for capturing non-trading income such as the interest income mentioned earlier. The Other Income presented at the bottom of the Profit and Loss report after the expenses.
Create JSS as an Other Income account type and use a Make Deposit feature or a General Journal to record the cash grant received, it debits the Bank and credits the JSS income account.
Stay safe and healthy.
When the company is profitable, part of the earnings may return to the investor as a dividend. A Dividend is not an expense but a shareholder fund (equity), which the declared value will be less off from the Retained Earnings.
The accountant may debit the Retained Earnings and credit the Dividend Payable account, which is a Current Liabilities account type when a dividend has declared.
Instead of directly debiting the Retained Earnings account, the accountant may sometimes debit the Dividend account (Shareholder Fund/Equity account), which is a temporary account, and transfer out from Dividend to the Retained Earnings account later.
Below is a screenshot of the equity section of a Balance Sheet report:
Check with your accountant for more information about the dividend.
Software: QuickBooks #accounting software
Bank reconciliation is a process of comparing the Cash Book against the Bank Statement. The objective of the bank reconciliation is to confirm the withdrawals and deposits presented in the Bank Statement have recorded in the ledger correctly.
Although you can record the opening balance of the bank account in QuickBooks with the ledger balance, we prefer to use the bank statement closing balance instead. As the later can show the deposit in transit and the cheque, which issued but not yet presented at the bank reconciliation.
However, if the bank’s ledger balance has used as an opening balance and you realised a cheque issued in last financial year but has not yet presented in the following month, then a journal is needed to adjust the opening balance of the bank ledger.
You need to debit the bank account to increase the ledger balance and credit back the amount as a form of separating the cheque that has not yet presented from the bank opening balance.
You need to select both the original opening balance and the debit entry of the journal during the bank reconciliation and leave the credited amount of the journal as not presented.
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