Provisions and Reserves

Provisions and Reserves

In fact, provisions and reserves are such considerationswhich relate to the future needs for which a part of the current earning has to be set aside. In thisChapter, I will discuss the accounting treatment of provisions and reserves shown in the BalanceSheet of enterprises.

Read More »
Depreciation

Depreciation

Depreciation means a fall in the value of an asset because of usage or with efflux of time or due toobsolescence or accident. Every fixed asset looses its value, once it is put to use In this chapter I will discuss the following topics 11.01 Meaning of Depreciation11.02 Characteristics of Depreciation11.03 Depreciation and Other Related

Read More »
Capital and Revenue - Receipts and Payments

Capital and Revenue-Receipts and Payments

A proper distinction between expenditure and expense, income and receipt, capital, and revenue as regard to expenditure, payments, receipts, profits, and losses, is one of the basic principles of correctaccounting. In this chapter I will discuss the following topics 10.01 Meaning and Difference between Expenditure and Expense10.02 Meaning and Difference between Income and Receipts10.03 Meaning

Read More »
Rectification of Errors

Rectification of Errors

In this chapter of rectification of error, I will discuss the different types of error and method of its rectification under the following heads. 9.01 Types of Errors• Errors Disclosed by the Trial Balance• Errors not Disclosed by the Trial Balance• Locating Errors9.02 Rectification of Errors9.03 Suspense Account

Read More »
Trial Balance

Trial Balance

A Trial Balance is a statement of accounts which appears in the Ledger showing either the balancesor the total amounts of debit and credit items. In this I will discuss the following topics 8.01 Meaning of a Trial Balance8.02 Objectives or Utility of a Trial Balance8.03 Limitations of Trial Balance8.04 Methods of Preparing a Trial

Read More »
Bank Reconciliation Statement

Bank Reconciliation Statement (BRS)

A Bank Reconciliation Statement is prepared on a particular date to reconcile the bank balance in the Cash Book with the balance as per the Bank Pass Book (or Bank Statement) by showing reasons for differences between the two. In this chapter I will discuss the following topics 7.01   Meaning of a Bank Reconciliation Statement

Read More »
Subsidiary Books

Subsidiary Books

SUBSIDIARY BOOKS book contain Cash Book, Purchases Day Book, Sales Day Book, Purchases Returns Book, Sales Returns Book, Bills Receivable Book, Bills Payable Book and Journal Proper. In this chapter I will discuss the following topics 6.01 Subsidiary Books 6.02 Cash Book       6.02.01 Meaning          6.02.02 Single Column Cash Book       6.02.03

Read More »
Journal and Ledger

Journal and Ledger

In this chapter of Journal and Ledger I will discuss the following topics 5.01 Meaning of an Account 5.02 Meaning of Debit and Credit 5.03 Classification of Accounts 5.04 Significance of Debit and credit in Accounts 5.05 Journal   5.05.01 Steps and Rules of Journalising   5.05.02 Totaling and Carry Forward.   5.05.03 Simple and

Read More »
Voucher Preparation

Business Transactions – Voucher Preparation

Business Transactions are recorded in the books of accounts on the basis of an evidence such as bills of purchases, invoices for sales, debit and credit notes, etc. These evidences being the basis of recording entry, areknown as Source Documents. Rules of debit and credit are applied to each transaction and a voucher is prepared

Read More »
Accounting Terms

Accounting Terms

Accounting Terms are general English words that are frequently used in accounting and sometime differently understood in accounting. Following Accounting Terms will be discussed in this chapter 3.01.01   Debtor   3.01.02   Creditor   3.01.03   Assets   3.01.04   Liabilities   3.01.05   Goods   3.01.06   Stock or Inventory   3.01.07   Profit   3.01.08   Loss   3.01.09   Expense

Read More »