Tag Archives: Accounts

Types of Cash Book, How Many Types of Cash Book, Contra Entry

Types of Cash Book

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 […]

Functions of Accounting, The Accounting Functions in an Organization

Functions of Accounting

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, but changing social relationships diluted the earlier thinking. It is now believed that besides the owner or the management of the business enterprise, users of accounts include the investors, employees, […]

Journal, What is Journal, Advantages of Journal, Functions of Journal

Advantages 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 chronological order. The process of recording transaction in a journal is called as ‘Journalisation’. The entry made in this book is called a ‘journal entry’. Journal is the book of […]

Ledger – Principal Book of Accounts, Ledger Accounts, Ledger Posting

Ledger Book, Ledger Posting

Ledger – Principal Book of Accounts: All journals are posted into ledger chronologically and in a classified manner Ledger is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. It is a set of accounts. It contains all accounts of the business enterprise whether […]

Branches of Accounting, Types of Accounting, How Many Branches in Accounting

Branches of Accounting

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 from a family function to functions of the national government. But hereinafter we shall concentrate only on business activities and their accounting because the objective of this study material is […]

Stages of Accounting | Accounting Cycle Steps | How Many Stages?

Stages of Accounting

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 and transactions which are of financial character and then be recorded in the books of account. This recording is done in Journal or subsidiary books, also known as primary books. […]

Systems of Accounting, Basis of accounting (Cash & Accrual Basis)

Systems of Accounting, Basis of accounting

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: Cash Basis of Accounting is a method of recording transactions by which revenues, costs, assets and liabilities are reflected in the accounts for the period in which actual receipts or […]

Users of Accounting Information, who can use accounting information

Users of Accounting Information

Users of Accounting Information: Accounting is of primary importance to the proprietors and the managers. However, other persons such as creditors, prospective investors, etc. are also interested in the accounting information. Generally users of accounts are classifed into two categories, (a) internal management and owners; and (b) external users or outsiders. Management accounting is concerned with […]

Journal : Books of Prime Entry, Functions and Advantages of Journal

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 special journal has been kept in the business. All transactions are first recorded in the journal as and when they occur; the record is chronological; otherwise it would be difficult to […]

5 Key Factors to Consider While Choosing an Accounting Software

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 switch from traditional bookkeeping practices to using a business accounting software? While almost every business has benefited greatly from employing accounting software, there are few factors that you should consider […]