Alex Poudel 
Revenue is the total repeats of the firm by selling output. It is the amount of money, which the firm receives by the sale of its output in the market, the receipts obtained are the revenue of the firm. Types of revenue There are three core concepts of revenues in economics. They are: a. Total revenue … Read more
The income and expenditure account is prepared by a nontrading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period. It is one of the final accounts of nontrading concern like the profit and loss account of trading concern. All the revenue incomes during the accounting period are … Read more
The bank should pay the amount mentioned on the cheque as soon as it is presented. If the amount of a cheque is paid by the bank to the payee, the check is said to be honored. If the bank refuses to pay the amount of the cheque, then the cheque is said to be dishonored. Thus, the dishonor of … Read more
Receipts and payment account are a summary of cash receipts and payments received during the accounting period. It records all cash receipts and payments including capital receipts and revenue receipts respective of the accounting period. All cash (cash and bank) receipts are recorded on the debit (receipts) side and all cash (cash and bank ) payments are recorded on the … Read more
A provision is the sum of amount set aside by charging against the profit ans loss account. It is created for meeting a known loss or liability. It is maintained for meeting an anticipated loss or liability of uncertain amount. Meaning of Provision Search amount of anticipated loss liability can only be estimated. If the present … Read more
Meaning Of Secret Reserve A reserve created with a view to strengthening the financial position of a business without explicitly showing its books of account is called a secret reserve. The hidden reserve is not shown in the balance sheet. It is known as internal reserve. One way of creating it by showing the figure of net profit marks … Read more
When goods are sold in a cash, the sales account is credited. Cash belongs to real accounts and according to the rule of real account assets coming into business debited. On the other hand, in the case of cash sales, income from sales is credited. Similarly, when goods are sold for cash, assets increase in … Read more
LEDGER ACCOUNT To help reveal the financial position: The ledger also contains the accounts of the financial transactions relating to capital, all liabilities, and assets of the business. With the help of the balances of these accounts and the profit or loss of the business, a balance sheet may be prepared to show its financial … Read more
Under the reducing balancing method, depreciation is charged at a fixed rate on the reducing balance of assets after deducting depreciation every year. The reducing method is also popularly known as Diminishing Balance Method. The balance in the asset account will go on decreasing but will never become zero. The remaining balance in the asset … Read more
Trial balance is an important statement prepared under the double-entry system. The fundamental principle of the double-entry system is that for every amount of debt, there is an equal amount of credit or vice versa. This principle provides a check on the arithmetical accuracy of the recordings of financial transactions in different books such as … Read more