A trial balance is a statement of debit and credit balance of the ledger accounts which is prepared in order to prove the arithmetical accuracy of the books of .....

Journal entries Date Particulars LF Debit Rs. Credit Rs. a). Cash a/c ……………………………Dr. 60,000 To capital a/c 60,000 (Being business .....

Any two objectives of preparing a ledger account are: To make a permanent record of all the financial transactions in a classified manner. To supply detailed information on any account for a given period easily and immediately. .....

A ledger is the first step of accounting, which makes a primary record of all the financial .....

The following are the main objectives of preparing a ledger account: To make a permanent record of all the financial transactions in a classified manner. To supply detailed information on any account for a given period easily and immediately. To .....

Bases of differences Journal Ledger Step Journal is the first step of the accounting cycle. Ledger is the second step of the accounting cycle. Meaning It is a primary book in which all the financial transactions are recorded in the same place. It .....

Journal entries Date Particulars LF Debit Rs. Credit Rs. a). Furniture a/c ……………………….Dr. 7,000 To Bank a/c 2,000 To Fine Furniture a/c 5,000 (Being .....

Journal Entries Date Particulars LF Debit Amount (Rs.) Credit Amount (Rs.) a). Cash a/c……………..Dr. 700 To commission received a/c 700 (Being commission received from Sujata.) .....

Journal entries Date Particulars LF Debit Rs. Credit Rs. a). Cash a/c ……………………………Dr. 60,000 To capital a/c 60,000 (Being business started with .....

A ledger account is a statement of information on a particular head. It is the summary records of all the transactions relating to a particular person or property or income or .....

Journal Entries Date Particulars LF Debit Amount (Rs.) Credit Amount (Rs.) a). Purchase a/c……………..Dr. 15,000 To Hello Trading Center’s a/c 15,000 (Being goods purchased .....

cash a/c 5000000 to capital a/c .....

The system record of a transaction in the journal book is called journal entry, the process of passing journal entry is called journalising.The rules are also known as rules of debit and credit. 1. Personal Account:It is the account of a person or .....

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The process of recording the financial transactions in the journal in a systematic way is called .....

The following are the main importances of journal: It provides the legal evidence of all the transactions performed by an organization. It provides the foundation for further accounting processes of the transactions. It provides the basis for .....

Any two objectives for preparing journal are: To make permanent and systematic record of all the financial transactions. To help to prepare the principal book or ledger. .....

The following are the objectives of preparing journal: To make permanent and systematic record of all the financial transactions. To help to prepare the principal book or ledger. To provide legal evidence of all the financial transactions performed .....

Journal is the primary record of all the financial transactions. It is the first book to keep systematic record. It is also known as subsidiary .....

The excess amount of income over expenditure is known as .....

A chequeis an unconditional order drawn upon a specified banker signed by the .....

Bank is financial institution, which accepts deposits from the public in different accounts and grants loans to individuals and corporations against their .....

The amount borrowed from the individual and financial institution is known as .....

Interest is an extra amount paid to a money lender against the use of his money for a given .....

Incomes earned but not yet received are called accrued incomes. Accrued incomes are current assets of the .....

The incomes, which are not earned but received in advance, are advanced incomes. Advance incomes are current liabilities of the .....

Expenses paid in advanced are called prepaid expenses. Prepaid expenses are current assets of the .....

The amount of cash remains in the business on any given point of time is called cash in .....

The amount of bill drawn by the creditor accepted by the business promising in writing for paying the amount of goods purchased on credit on a certain date is called bills .....

The excess amount of expenditures over incomes is known as .....

The amount payable to the suppliers against the goods purchased on credit arecalled .....

The amount receivable from the customers against the good sold on credit arecalled .....

The materials or goods which remain unsold at the end of an accounting year are known as closing .....

The assets which can be used or converted into cash within a period of time arecalled current assets. Cash in hand, cash at bank, bills receivable, debtors, marketable securities and stock are some of the examples of current .....

The assets which are purchased for generating income for long period of time arecalled fixed. Land building, plant and machinery, furniture are some of the .....

The office resources which are purchased for generating income or revenue arecalled .....

The amount of money payable by the business to the outsiders normally within a period of one year is called short term .....

The amount of money payable by the business to the outsiders normally after a period of one year arecalled long term liabilities. Debentures, mortgage loans, long term loans, loans taken from bank and financial institutions are some of the examples .....

The amount of money payable by the business to outsiders on a specific point of time is known as .....

The amount of money invested by an owner in the beginning or during the life of the business is known as .....

In the book keeping system, there are two fold effects in which one is debit and the other is .....

Double Entry system is refers to such accounting system under which every financial transction is recorded into two separate account with equal amount to determine the true profit or loss and financial position of the .....

The differences between single entry system and double netry system are as follows: S.N Single Entry System Double Entry System 1 Not based on the concept of duality. Based on the concept of duality. 2 Maintain the cash book and personal account of .....

The following are the disadvantages of double entry system: It is an expensive system because a number of books are required to maintain. It is not suitable for small business having limited number of transactions. It consumes more time for .....

The following are the main features of double entry system of book keeping: Double effect: The double entry system maintains records showing double effect of each financial transactions. It makes record of each financial transaction into two .....

The following are the advantages of double entry system: It helps the record of financial transaction in a systematic and scientific manner. It helps to prepare trail balance to check arithmetical accuracy of books of accounts. It facilitates for .....

The following are the objectives of double entry system: To maintain the systematic record of financial transactions. To solve the problems arises on financial matters. To provide financial information to the management for making financial plans .....

Single entry system is that type of accounting system which has no fixed set of rules and principles for recording the financial transaction. It does not follow the basic principles of .....

The rule for debit and credit for various types of accounts are as follows: Accounts Rule for Debit Rule for Credit Personal account The receiver The giver Real account What comes in What goes out Nominal account All expenses .....

Accounting is concerned with the act of recording, classifying and summarizing the financial transactions of a business to know the operating results and financial position and communicating such operating results and financial position to all .....