Difference between Provisions & Reserves

Difference between Provisions & Reserves

Difference between Provisions & Reserves- Provisions are certain expenses/losses that are related to the current accounting period but the amount of which is not known with certainty because they are not yet incurred. It is necessary to form a provision for such items for ascertaining true net income. For example, a trader who sells on … Read more

Petty Cash Book in Accounting

Petty Cash Book in Accounting

Petty cash book in accounting – In every organization a Petty Cash Book is maintained by many small payments such as conveyance, cartage, postage, telegrams, and other expenses (collectively recorded under miscellaneous expenses) made. These are generally repetitive in nature. If all these payments are handled by the cashier and are recorded in the main … Read more

Depreciation Meaning

Depreciation Meaning

What is a Depreciation? Depreciation meaning- The decline in the value of a fixed asset due to use, the passage of time, or obsolescence. if a business enterprise procures a machine and uses it in a production process then the value of the machine declines with its usage. Even if the machine is not used … Read more

Trial Balance

Trial Balance

What is a Trial Balance? A trial balance is a statement showing the balances, or a total of debits and credits, of all the accounts in the ledger intending to verify the arithmetical accuracy of posting into the ledger accounts. Trial balance is an essential statement in the accounting method as it indicates the final … Read more

Books of Accounts

Books of Accounts

Books of Accounts- It means determining what transactions to record, i.e., to identify events that are to be recorded. It involves observing activities and selecting those events that are of a considered financial character and relate to the organization. The business transactions and other economic events, therefore, are evaluated to decide whether it’s to be … Read more

Recording Transactions in Accounting

Recording of Transactions in Accounting

Introduction of Recording Transactions in Accounting In the realm of financial management, recording transactions in accounting holds paramount importance. It’s the cornerstone of accurate and transparent financial reporting, allowing individuals and businesses to maintain a clear overview of their monetary activities. This comprehensive guide delves into the intricacies of recording transactions in accounting, shedding light … Read more