Classification of Accounts: The term Account is a record in summarized and classified form of all business transaction that take place between particular person or persons thing or things specified. For example: During a month we purchase goods for six times from usman. In order to know the total amount due to him we must […]
Cash Book -Three column cash book practice
Basic Principles of Accounting
Basic Principles of Accounting Basic Principles of Accounting and Concepts are a set of broad conventions that have been devised to provide a basic framework for financial reporting. As financial reporting involves significant professional judgments by accountants, these concepts and principles ensure that the users of financial information are not mislead by the adoption of accounting policies and […]
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 Accounting Equation with Example
What is Accounting Equation ? Accounting equation is Assets = Liabilities+owner equity The resources controlled by a business are referred to as its assets. For a new business, those assets originate from two possible sources: Investors who buy ownership in the business Creditors who extend loans to the business Those who contribute assets to a business […]
