Click Virtual University

Author: Afzalur

  • Provisions and Reserves

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

    Provisions and Reserves
    Provisions and Reserves

  • Depreciation

    Depreciation means a fall in the value of an asset because of usage or with efflux of time or due to
    obsolescence 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 Depreciation
    11.02 Characteristics of Depreciation
    11.03 Depreciation and Other Related Concepts
    11.04 Causes of Depreciation
    11.05 Accounting Concept of Accounting
    11.06 Objectives or Need for Providing Depreciation
    11.07 Factors or Basis of Providing Depreciation
    11.08 Methods of Recording Depreciation
    11.09 Methods of Charging Depreciation
    11.10 Change of Method of Depreciation [Accounting Standard-6 (Revised)]
    11.11 Practical Issues Relating to Depreciation

    Depreciation
    Depreciation

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  • 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 correct
    accounting.

    In this chapter I will discuss the following topics

    10.01 Meaning and Difference between Expenditure and Expense
    10.02 Meaning and Difference between Income and Receipts
    10.03 Meaning and Difference between Capital Expenditure and Revenue Expenditure
    10.04 Meaning and Difference between Capital Receipt and Revenue Receipt
    10.05 Meaning and Difference between Capital Profit (Capital Income) and Revenue Profit (Revenue Income)
    10.06 Meaning and Difference between Capital Loss and Revenue Loss
    10.07 Meaning of Deferred Revenue Expenditure

    Receipt and Payment
    Capital and Revenue

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  • 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 Errors
    9.02 Rectification of Errors
    9.03 Suspense Account

    Rectification of Errors

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  • Trial Balance

    A Trial Balance is a statement of accounts which appears in the Ledger showing either the balances
    or the total amounts of debit and credit items.

    In this I will discuss the following topics

    8.01 Meaning of a Trial Balance
    8.02 Objectives or Utility of a Trial Balance
    8.03 Limitations of Trial Balance
    8.04 Methods of Preparing a Trial Balance
    8.05 Preparation of the Trial Balance from Ledger Account Balances
    8.06 Redrafting of a Trial Balance

    Trial Balance
    Trial Balance

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  • 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

    7.02   Need and Importance of a Bank Reconciliation    Statement

    7.03   Causes of Difference between Cash Book and Pass Book    Balances

    7.04   Methods of Preparing a Bank Reconciliation Statement

    7.05   Preparation of a Bank Reconciliation Statement

    7.06   Preparation of a Bank Reconciliation Statement given as    an extract of the Cash Book as well as the Pass Book    relating to the same month

    7.07   Preparation of Bank Reconciliation Statement with       Adjusted (corrected) Cash Book Balance

    Bank Reconciliation Statement
    Bank Reconciliation Statement
    Bank Reconciliation Statement

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  • 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 Double Column Cash Book

             6.02.04 Triple Column Cash Book

    6.03 Petty Cash Book

    6.04 Purchases Book

    6.05 Sales Book

    6.06 Purchases Return Book

    6.07 Sales Return Book

    6.08 Bills Receivable Book

    6.09 Bills payable Book

    6.10 Journal Proper

    subsidiary Books
    Subsidiary Books

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  • 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 Compound Journal Entries

    5.06 Opening Entry

    5.07 Sub-division of Journal

    5.08 Ledger

      5.08.01 Meaning

      5.08.02 Form of a Ledger

      5.08.03 Mechanics of Posting

      5.08.04 Balancing of Ledger Accounts

    Journal and Ledger
    Journal and Ledger

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  • 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, are
    known as Source Documents.

    Rules of debit and credit are applied to each transaction and a voucher is prepared before recording in the books of original entry, i.e., Journal and special purpose books in a chronological order. The entries recorded in these books of accounts are transferred to the
    specific Ledger accounts.

    In this Chapter, we shall discuss Source Documents and the preparation of a Voucher.

    4.01 Source Documents 4.02 Meaning of a Voucher
    4.03 Types of Vouchers 4.04 Preparation of a Voucher

    Business Transactions – Voucher Preparation
    Voucher Preparation

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