What is Depreciation Depreciation is a gradual decrease in the value of an asset. Explanation: We know that when any asset is used its value decreases. This decrease in the value of asset is called its depreciation. When we purchase any asset we actually pay in advance for the services of that asset for […]
Final Accounts of Company
Final Accounts of Company Final Accounts of company includes the Trading, Profit Loss and Balance Sheet. This practical example of Final Accounts of company will show you that how we prepare the final accounts i.e. Trading, profit and loss account and Balance sheet of Business. By Considering this example you will understand the basic theme […]
Difference between Trial Balance and Balance Sheet
Difference between Trial Balance and Balance Sheet Trial Balance Vs Balance Sheet Trial Balance: The Trial balance is prepared by extracted the balances from the ledger accounts, it shows the summary of the ledger accounts but does not show the financial position of a business. It is usually prepared at the end of an […]
What is profit and loss account and balance sheet
What is profit and loss account and balance sheet First we have proved the arithmetical accuracy of ledger by means of trial balance and now we proved to ascertain our final accounts i.e Profit and loss account and balance sheet. In order to determine the profit and loss of a business and its financial […]
Bank Reconciliation Statement A practical Example
Bank Reconciliation Statement: This Problem will help you to understand that how we prepare bank reconciliation statement, how we reconcile our cash book and pass book balance, and point out error. BRS Practical Example: The bank statement of usman brothers indicates as balance of Rs.4000 on January 30 2014, .the balance of a cash in […]