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When it comes to financial management, choosing the right accounting software is crucial for the success of any business. While cloud-based accounting software offers a number of benefits, such as accessibility from anywhere and automatic updates, it also has its fair share of disadvantages. From limited control over security and data privacy to dependence on … Read more
In 2023 almost all businesses are shifting to the cloud because of its amazing features. If you’re a small business owner or freelancer, you know how important it is to keep your finances in order. However, managing your finances and bookkeeping can be a time-consuming and complicated task. That’s where cloud-based accounting software comes in. … 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
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
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
CONCEPT OF SUBSIDIARY BOOKS A big business needs to perform a large volume of financial transactions As a result, the title of a single journal book may be inadequate as well as inconvenient to systematically record all such financial transactions. Thus, the journal is subdivided into a number of specialized journals known as the subdivision … Read more
Accounting is concerned with the processing of financial information of an entity. It generates and communicates the necessary financial information to its users. It is, therefore, a process of recording classifying, and summarizing the financial transactions, and communicating the results of its operations. Definition of Government Accounting Government accounting is the process of recording , … Read more