Category Archives: Accounting

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 […]

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 […]

Comparison between Capital Expenditure and Revenue Expenditure

Difference 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 of acquiring a fixed asset which is intended to be used over long term for earning profits there from. e. g. amount paid to buy a computer for office use […]

Difference between Capital Receipts and Revenue Receipts

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 can be treated as capital receipt. The distinction of transaction into revenue and capital is done for the purpose of placing them in Profit and Loss account or in the […]

Capital Receipts and Revenue Receipts, Check out Major Difference

Capital Receipts and Revenue Receipts

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 and also any sum received from debenture-holders, any loans and the proceeds of sale of any fixed assets of a business enterprise. Capital Receipts – Govt receipts which either create liability […]

Accounting Principles, Accounting Concepts and Conventions (Detailed)

Accounting Principles

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 purpose. Therefore, it is important that financial statements prepared by different organizations should be prepared on uniform basis. Also there should be consistency over a period of time in the […]

Role of Accountant : Maintenance of Books of Accounts by Accountant

Role of Accountant

Role of Accountant: An accountant performs financial functions related to the collection, accuracy, recording, analysis and presentation of a business, organization or company’s financial operations. An accountant has several roles and responsibilities to meet in their job, both in terms of their competence at carrying out accounting practices as well as their ethics and approach to the job. In most cases, accountants use the financial records compiled by bookkeepers […]

Trial Balance: features, objectives, methods of preparing the trial balance

Petty Cash Book

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 and bank balances from cash book. Since every transaction has a dual effect i.e. every debit has a corresponding credit and vice versa, the total of the debit balances and […]

Petty Cash Book, Imprest System of Petty Cash (Advantages)

Petty Cash Book

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 the petty cash book. The petty cash book is maintained by separate cashier known as petty cashier. The firm may adopt Imprest System of maintaining petty cash. The petty cashier […]