Double Entry System Advantages & Disadvantages. Find complete details for Double entry system with Advantages & Disadvantages. Here you can find everything related to Double entry system like – Advantages and Disadvantages of Double entry system, Main Advantages of Double entry system for Example – Accuracy, Easy to detect errors and omissions, Consistency, Helps in decision making, Indicates financial position, […]
Types of Cash Book: Cash book is the book in which all transactions concerning cash receipts and cash payments are recorded. Cash Book is in the form of an account. It serves the purpose of Cash Account also. On the debit side, all cash receipts are recorded while on the credit side, all cash payments […]
Basic Principles of Accounting and Golden Rules of Accounting. Guidelines on Basic Accounting Principles and Concepts. Here we provide complete guide for all Basic Concepts or Principles of Accounting with Golden Rules of Accounting. In this article you can find complete details regarding Basic Principles and Golden Rules of Accounting like – Basic Principles of Accounting, […]
Meaning of Accounting, Scope of Accounting, Functions of Accounting, Type of Accounting, Used of Accounting, Limitation of accounting. In this article you can find everything related to Meaning & Scope of Accounting like – Various Branches of Accounting, Need and Use of Accounting, Functions of accounting data, The users of financial statement & their information needs, Qualitative […]
How to Prepare Final Accounts? Process for Finalize Accounts: How to Prepare Final Accounts and Final Statements. How Final Accounts are Made?, Find Complete details for How to Prepare Final Accounts of any Company. In this article you can find everything related to How How Final Accounts are Made like – Introduction of Trading account, Profit & […]
Balancing Ledger Accounts: Balancing of an account means the process of equalizing the two sides of an account by putting the difference on the side where amount is short. After Ledger Posting is completed the various accounts are balanced in order to know the exact position of a particular kind of transaction. Where the debit side of an account […]
Steps to Locate Errors: Even if there is only a very small difference in the trial balance, the errors leading to it must be located and rectified. A small difference may be the result of a number of errors. The following steps will be useful in locating errors: Whenever there is a difference in the trial […]
Suspense Account: When a trial balance does not agree, efforts are made to locate errors and rectify them. However, if reason for disagreement of trail balance cannot be found, a new account called suspense account is opened in order to give trial balance an appearance of agreement. Then final accounts are prepared. Debit balance in suspense […]
Contingent Assets and Contingent Liabilities: A contingent asset is a potential asset associated with a contingent gain. Unlike contingent liabilities and contingent losses, contingent assets and contingent gains are not recorded in accounts, even when they are probable and the amount can be estimated. and A contingent liability is defined as a liability which may arise depending on the outcome of a specific event. It is a possible obligation which may or may […]
Accounts and its Classification (Accounts Classification): The business transactions are recorded in accounts. An account is an individual record of a person, firm, or thing, an item of income or an expense. An account is prepared for each type of asset, liability, owner(s) equity, revenue and expense. For example, the account of cash would show the […]