Maintaining Books of Accounts by Small Business Owners
Maintaining Books of Accounts by Small Business Owners, Check Complete Requirement of Maintenance of Books of Accounts, also check Requirement to Maintain Books And Audit, What
Accounting Standards
Deferred Revenue Expenditure, What is Deferred Revenue
Deferred Revenue Expenditure: Deferred revenue expenditure is that expenditure for which payment has been made or a liability incurred but which is carried forward on the
Classification of Errors, Types of Errors (Clerical Errors)
Classification of Errors or Types of Errors: Every concern is interested in ascertaining its true profit and financial position at the close of the trading
Capital Expenditure, Meaning with example of Capital Expenditure
Capital expenditure is that expenditure which results in acquisition of an asset or which results in an increase in the earning capacity of a business.
AS 5: Net Profit or Loss for the Period, Prior Period Items
AS 5 – Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies. This Standard should be applied by an
Journal, What is Journal, Advantages of Journal, Functions of Journal
Journal: A journal is often referred to as Book of Prime Entry or the book of original entry. In this book transactions are recorded in their
Accounting standard 28 (AS 28) Impairment of Assets
Accounting standard 28 Impairment of Assets: The objective of AS 28 is to prescribe the procedures that an enterprise applies to ensure that its assets
Accounting Cycle, Steps / Phases of Accounting Cycle: Detailed
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
Journal : Books of Prime Entry, Functions & Advantages of Journal
General Journal: This is also known as Journal Proper or General Journal. It is used for making the original record of such transactions for which no
Ledger Accounts 2021 – Principal Book of Accounts & Posting
LedLedger Accounts – Principal Book of Accounts: All journals are posted into ledger chronologically and in a classified manner Ledger is the principal book of accounts
Branches of Accounting, Types of Accounting, Many Branches
Branches of Accounting: Accounting has universal application for recording transactions and events and presenting suitable information to aid decision-making regarding any type of economic activity ranging
Contingent Assets and Contingent Liabilities – In Detailed
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
Types of Cash Book, How Many Types of Cash Book, Contra Entry
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
Steps to Locate Errors | Rectification of Errors, Errors in Trial Balance
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
AS 1 (Accounting Standard 1) – Disclosure of Accounting Policies
AS 1 – Disclosure of Accounting Policies. This Standard deals with the disclosure of significant accounting policies which are followed in preparing and presenting financial
Ind AS 7 – Statement of cash flows, Applicability, Scope, Objective
Ind AS 7 Statement of Cash Flows – Ind AS 7 prescribes principles and guidance on preparation and presentation of cash flows of an entity
Difference between Capital Expenditure and Revenue Expenditure
Difference between Capital Expenditure and Revenue Expenditure: The following are the points of distinction between capital expenditure and revenue expenditure: The Revenue Expense relates to the
Accounting Equation: Formula of Accounting with Example
Accounting Equation: The accounting equation that is the foundation of double entry accounting. The accounting equation displays that all assets are either financed by borrowing money or paying with the money
Ind AS 40 Investment Property – Objective, Classification
Ind AS 40 Investment Property. The objective of IndAS 40 is to prescribe the accounting treatment for investment property and related disclosure requirements. Investment property
Comparison between Capital Expenditure and Revenue Expenditure
Comparison between Capital Expenditure and Revenue Expenditure, check out difference between capital Expenditure and Revenue Expenditure. Capital Expenditure: This represents expenditure incurred for the purpose
Features of the Ledger Account, The Features of 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
Accounting for Not for Profit Organisation, Accounting for Special Items
Accounting for Not for Profit Organisation, Check Accounting for non profit organisations, A Not for Profit Organisation prepares their financial statements in the following form: i)
Limitations of Accounting, Disadvantages of Accounting (Detailed)
Limitations of Accounting, What are the Limitations of Accounting: Accounting is not fully exact: Accounting is influenced by the personal judgment in respect of various terms.People
Accounting Standard 16 (AS 16) – Accounting for Borrowing Costs
Accounting Standard 16 – Accounting for Borrowing Costs (AS 16). This Standard should be applied in accounting for borrowing costs. This Standard does not deal
Balancing Ledger Accounts, Ledger accounts balancing procedure
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
Double Entry System Definition, Advantages of Double Entry System
Double Entry System of book-keeping has emerged in the process of evolution of various accounting techniques. It is the only scientific system of accounting. According
Petty Cash Book, Imprest System of Petty Cash (Advantages)
Petty Cash Book: Payments in cash of small amounts like traveling expenses, postage, carriage etc. are petty cash expenses. These petty cash expenses are recorded in
Rules of Debit and Credit, Concept of Debit and Credit Entries
Rules of Debit and Credit: The left hand side of an account is called the debit side; while the right hand side is called the
What is IASB, FASB, IFRS, Ind AS and US GAAP? with Difference
What is IASB, FASB, IFRS, Ind AS and US GAAP?. Every individual performs some kind of economic activity. A salaried person gets salary and spends
IND AS 36 Impairment of Assets – Applicability, Calculations
IND AS 36 Impairment of Assets: The objective of Ind AS 36 is to prescribe the procedures that an entity applies to ensure that its