What is income and expenditure account? Features
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 …
Receipt And Payments Account
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 …
How sales and sales return taken in journal
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 …
Ledger Account and It’s Importance
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 …
Diminishing Balance Method Advantages and Disadvantages
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 …
Trial Balance Concept and Definition
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, …
Subsidiary Books and It’s importance
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 …
Concept Of Government Accounting
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, …
PRINCIPLES OF ACCOUNTING
MEANING AND DEFINITIONS OF ACCOUNTING The meaning of accounting is broader than that of bookkeeping. Accounting includes not only book-keeping but also other activities. In …
Cash Transaction and It’s Meaning
CONCEPT OF CASH TRANSACTIONS All financial transactions are ultimately settled in cash Some transactions are settled Imminently after purchase and sale and the rest are …