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
Accounts
Suspense Account, What Is a Suspense Account? with Examples
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
Rectification of Errors, Stages of Errors, Need for Rectification
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
Difference between Capital Receipts and Revenue Receipts
Difference between Capital Receipts and Revenue Receipts: Receipts which are not of revenue nature are capital receipts.The Receipts which are not received now and then
Accounts and its Classification, Types of Accounts (An Analysis)
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
Revenue Expenditure, What is Revenue Expenditure with Example
Revenue Expenditure: Expenses whose benefit expires within the year of expenditure and which are incurred to maintain the earning capacity of existing assets are termed as
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
5 Key Factors to Consider While Choosing an Accounting Software
5 Key Factors to Consider While Choosing an Accounting Software. How to Choose Accounting Software. Do you run a small business? Are you planning to
Accounting Principles, Accounting Concepts and Conventions
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
Advantages of Accounting, check out main Advantages of Accounting
Advantages of Accounting: These advantages usually coincide with the ability for companies to improve operations and overall profitability. Business owners can also create a competitive
Trial Balance: features, objectives, methods of preparing
Trial Balance methods: A trial balance is a schedule or list of debit and credit balances extracted from various accounts in the ledger including cash
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,
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
Fundamentals of Accounting, Introduction to Financial Accounting
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
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, 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.
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
Stages of Accounting | Accounting Cycle Steps | How Many Stages?
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, 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
Subsidiary Books: Introduction, Advantages of Subsidiary Books
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
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
Capital Losses and Revenue Losses, Detail of Capital 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
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
Systems of Accounting, Basis of accounting (Cash & Accrual Basis)
Systems of Accounting, Basis of accounting (Cash Basis & Accrual Basis). Difference between Accrual Basis of Accounting and Cash Basis of Accounting. Cash Basis of accounting:
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
Accounting for Rectification of Errors – Classification, Suspense
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
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