What is Amortization: The intangible assets whose property right is obtained for the specific period of time diminish in value with the passage of time this called as amortization. The example is patient rights, copyright, goodwill etc similarly, the value of leasehold property also decreases with the passage of time. In business terms, […]
Special Journals and Subsidiary Ledgers in Accounting
Define Special Journal in Accounting Special Journal is any accounting journal in the general journal that is used to record and post similar types of transactions. We can also define , it’s a place where similar transactions can be recorded and organized, so bookkeepers and accountants can keep track of different business activities. Special Journals Special […]
What is Contra Account in Accounting
This post will explain what a contra account is and how it works to correctly show the value of a organization’s financial statements. It will also provide examples to show the effect of contra entries. What is Contra: Contra means against. In Accounting terms, a contra account refers to an account which is balanced […]
What are Accounting Adjusting Entries
What are Accounting Adjusting Entries Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust expenses and revenues to the accounting period where they actually occurred.Generally speaking, they are adjustments based on reality, not on a source document. This is in sharp contrast to entries during the accounting […]
What is an Invoice ?
What is an Invoice? Invoice is a document which is sent by vendor to buyer after selling the goods. Vendor writes the descriptions of selling goods its quantity, rate, value of sold goods and other terms of payment. This invoice is useful document for both seller and buyer. You may also like to Read: Basic Accounting Terms Cash […]