Category: Fundamentals of Accounting

  • 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.

  • 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 […]

  • 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 […]

  • 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 [h5p id=”13″]

  • 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 […]

  • 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 […]

  • 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 […]

  • 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 […]