Functions of Accounting, Accounting Functions in an Organization
Functions of Accounting: There are certain users of accounts. Earlier it was viewed that accounting is meant for the proprietor or owner of the business,
Functions of Accounting: There are certain users of accounts. Earlier it was viewed that accounting is meant for the proprietor or owner of the business,
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 or Types of Errors: Every concern is interested in ascertaining its true profit and financial position at the close of the trading
Fundamentals of Accounting: Every individual performs some kind of economic activity. A salaried person gets salary and spends to buy provisions and clothing, for children’s
Difference between Book Keeping and Accounting with Meaning: Book-keeping is an activity concerned with the recording of financial data relating to business operations in a significant
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.
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
Stages of Accounting: As per this definition, accounting is simply an art of record keeping. The process of accounting starts by first identifying the events
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
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
Subsidiary Books: Introduction and Advantages of Subsidiary Books. In a Business, most of the transactions generally relate to receipts and payments of cash, sale of
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:Accounting has universal application for recording transactions and events and presenting suitable information to aid decision-making regarding any type of economic activity ranging
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
Contingent Assets and Contingent Liabilities:Acontingent assetis a potentialassetassociated with acontingentgain. Unlikecontingentliabilities andcontingentlosses,contingent assetsandcontingentgains are not recorded in accounts, even when they are probable and the
Systems of Accounting, Basis of accounting (Cash Basis and Accrual Basis).Difference between Accrual Basis of Accounting and Cash Basis of Accounting. Cash Basis of accounting:
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:Even if there is only a very small difference in the trial balance, the errors leading to it must be located and
Accounting for Rectification of Errors ,To err is human! So, it is obvious that while we are doing the accounting of an entity, we can
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
Accounting Principles : Accounting is a language of the business. Financial statements prepared by the accountant communicate financial information to the various stakeholders for decision-making
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:The accountingequationthat is the foundation of double entryaccounting. Theaccounting equationdisplays that all assets are either financed by borrowing money or paying with the money
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
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: After recording the transactions in the journal, recorded entries are classified and grouped into by preparation of accounts. The book
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
Definition of Accounting: Accounting is used by business entities for keeping records of their monetary or financial transactions. A businessman who has invested money in
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
Capital and Revenue Receipts:Capital receipts comprise of payments or contributions into the business by the proprietor, partners or companies towards the capital of the firm