Balance Sheet

Balance Sheet

Balance Sheet- The record may be a statement prepared for showing the financial position of the business summarizing its assets and liabilities at a given date. The assets reflect debit balances and liabilities (including capital) reflect credit balances. It is prepared at the top of the accounting period after the trading and profit and loss … Read more

Trading and Profit & loss Account

Trading and Profit & loss Account

Trading and Profit & Loss Account are prepared to determine the profit earned or loss sustained by the business enterprise during the accounting period. It is a summary of the revenues and expenses of the business and calculates the net figure termed as profit or loss. Profit is revenue for fewer expenses. If expenses are … Read more

Best Accounting Books for Beginners

Best Accounting Books for Beginners

1. Think Like an Accountant This book is written by Shubhasish Das. This is the Best Accounting Books for Beginners for all who are struggling to understand accounting and do not be aware of why. Then you are in the proper place. The sole motive of this book is to lead you from confusion to … Read more

Bill of Exchange

Bill of Exchange

What is a Bill of exchange? Bill of Exchange-Goods are often sold or bought for cash or on credit. When goods are sold or bought for cash, payment is received immediately. On the other hand, when goods are sold/bought on credit the payment is deferred to a future date. In such a situation, normally the … Read more

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

Bank Reconciliation Statement

Bank Reconciliation Statement

A Bank Reconciliation Statement is the comparison made between the bank balance & as shown in the firm’s cash book, the two balances do not tally. Hence, we’ve to first ascertain the causes of the difference and then reflect them during a statement called the Bank Reconciliation Statement to reconcile (tally) the two balances. A … 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