What is Cashbook: A book in which receipts and payments of money are record,using debit and credit rules. CashBook: In small business where only one person is employed for receipt and payments of cash, only one book is used for recording of cash received and paid this book is called as cash book .Every page […]
What is Cash Receipts Journal & Cash Payment Journal
What is Cash Journal: Cash journal is used for transactions which are petty in nature. (petty cash book). For maintaining petty expenses cash journal transactions are recorded. In cash journal, we need to create business transactions first, like revenue items and expense items based on these transactions we will make postings in cash journal. Method […]
What is Trial Balance and its Purpose|Limitation|Format
What is Trial Balance: if you are look for what is trial balance then you are at the right place, here we will discuss what trial balance is in accounting..! When Ledger accounts have been prepared the next to prepare the trial balance by posting the balances of ledger accounts. It is a list […]
How to Make Ledger Account
How to make Ledger Account Objective of Ledger: The following objective of ledger are: 1.To classify the business transactions with a view to determine the real increase or decrease in any item during a particular period. 2.To extract a Trial Balance for proving the arithmetical accuracy of the accounting record. 3.To provide a record of […]
Accounting Journal Entries Examples
Accounting Journal Entries Examples The first step in accounting is to record the entries in journal book. Before going to explain how these Journal Entries are passed you must read Debit and Credit Rules. The following practical example helps you to understand that how we pass journal entries in journal book or daily […]