Tag Archives: Accounting India

Basic Principles of Accounting and Golden Rules of Accounting

Golden Rules of Accounting

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, […]

How to Prepare Final Accounts? Prepare Balance Sheet and P&L Account

Prepare Final Accounts

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 & […]

Accounting Cycle, Detail of Accounting Cycle, What is Accounting Cycle

Accounting Cycle

Accounting Cycle: When complete sequence of accounting procedure is done which happens frequently and repeated in same directions during an accounting period, the same is called an accounting cycle. Accounting cycle starts from the recording of individual transactions and ends on the preparation of financial statements and closing entries. The accounting cycle is the name given to the collective […]

Rectification of Errors | Stages of Errors | Need for Rectification of Errors

Rectification of Errors

Rectification of Errors: Every concern is interested in ascertaining its true profit and financial position at the close of the trading year. But inspite of the best efforts of the book-keeper and the accountant certain errors are committed in the recording of the transactions which affect the final accounts of the concern. It, therefore, becomes utmost […]

Suspense Account, What Is a Suspense Account? with Examples

Suspense Account

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 Detailed analysis

Contingent Assets and Contingent Liabilities

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, Types of Accounts (A Detailed Analysis)

Types of Accounts, Accounts and its Classification

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 […]

Features of the Ledger Account, What are the Features of Ledger Account

Features of the Ledger Account

Features of the Ledger Account: After recording the transactions in the journal, recorded entries are classified and grouped into by preparation of accounts. The book which contains all set of accounts (viz. personal, real and nominal accounts), is known as Ledger. It is known as principal books of account in which account-wise balance of each […]

Capital Profit and Revenue Profit, (check out detailed difference)

Capital Profit and Revenue Profit

Capital Profit and Revenue Profit: Capital profit which is earned on the sale of the fixed assets, The profit which is earned during the ordinary course of business is called revenue profit. Following are the main differences between capital profit and revenue profit. Capital profit is earned by selling assets, shares and debentures at a price more than their book […]

Capital Losses and Revenue Losses, Detail of Capital and Revenue Losses

Capital Losses and Revenue Losses

The loss suffered by a company on the sale of fixed assets, The loss suffered by the business in the ordinary course of business is called revenue loss. Capital and Revenue Losses: Revenue losses are the losses which arise during the normal course of business whereas capital losses are those which occur when selling fixed […]