Category: 11 ACCOUNTANCY

DEFINITION OF MANAGEMENT ACCOUNTING BY DIFFERENT AUTHORS

September 11, 2023November 24, 2025 commerceiets No Comments

Definition of Management Accounting by Different Authors ACCORDING TO THE ANGLO-AMERICAN COUNCIL ON PRODUCTIVITY “Management Accounting is the presentation of accounting information in such ways as to assist management in the creation of policy and the day-to-day operation of an undertaking.” Management accounting deals with the presentation of information so that it is helpful to…

11 ACCOUNTANCY

DIFFERENCE BETWEEN TRANSACTION AND EVENT

November 19, 2019March 1, 2025 commerceiets

DIFFERENCE BETWEEN TRANSACTION AND EVENT Before understanding the difference between transaction and event, one must clearly understand the two concepts. TRANSACTION Transaction refers to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an…

FINANCIAL ACCOUNTING, 11 ACCOUNTANCY, KEY DIFFERENCES

TRANSACTIONS

November 18, 2019March 25, 2025 commerceiets

TRANSACTIONS Transactions refer to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an effect on the net worth or financial position of the business. FEATURES OF TRANSACTION The following are the features of…

USERS OF ACCOUNTING

November 17, 2019 commerceiets No Comments

USERS OF ACCOUNTING Accounting provides the information to the users of the business. Various users are interested to know about the financial position of the business, which they get from the accounting records kept by the business and provided to them by way of publishing final accounts. The users of accounting are as follows: INTERNAL…

BALANCE SHEET

September 20, 2019March 25, 2025 commerceiets

MEANING Balance Sheet is also known as Position Statement. It is a summary of all the assets and the liabilities of the business concern prepared at the end of the year. It is a part of final accounts. All the nominal accounts i.e. Trading Account and Profit and Loss Account are closed by transferring to…

PROFIT AND LOSS ACCOUNT

September 17, 2019 commerceiets No Comments

PROFIT AND LOSS ACCOUNT Profit and Loss Account is an account prepared by the trading organizations to know about the net profit or net loss of the firm. This account records all the incomes on credit side and expenses on debit side of a particular year. This account is prepared at the end of the…

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11 ACCOUNTANCY, FINANCIAL ACCOUNTING

TRADING ACCOUNT

September 16, 2019 commerceiets

TRADING ACCOUNT Trading Account is one of the financial statements prepared by the trading firms at the end of the year. These are prepared to find out the gross profit or gross loss accruing to the firm. This account records all the amounts related to the goods purchased and sold. It helps in providing all the material…

DIFFERENCE BETWEEN DOUBLE AND SINGLE ENTRY SYSTEM

August 4, 2019 commerceiets No Comments

Difference between double and single entry system Before understanding the difference between Double & Single entry System, both concepts should be understood: SINGLE ENTRY SYSTEM Single Entry System in accounting is a system in which the proprietors or the firms do not follow specific rules of double entry system to maintain accounts. It is an Incomplete Record…

11 ACCOUNTANCY, FINANCIAL ACCOUNTING, KEY DIFFERENCES

DOUBLE ENTRY SYSTEM OF ACCOUNTING

August 4, 2019 commerceiets No Comments

DOUBLE ENTRY SYSTEM OF ACCOUNTING Double Entry System of Accounting is a system under which each transaction is regarded to have two-fold aspects and both the aspects are recorded to obtain the complete record of dealings. It is based on the rule that debit should be equal to the credit. Luca Friar Pacioli is known…

11 ACCOUNTANCY, FINANCIAL ACCOUNTING

ACCOUNTING STANDARDS

August 1, 2019 commerceiets No Comments

ACCOUNTING STANDARDS Accounting standards may be defined as written statements, issued from time to time by institutions of accounting professionals, specifying uniform rules or practices for drawing the financial statements. ACCORDING TO KOHLER “Accounting standards are code of conduct imposed on accountants by custom, law or professional body.” Accounting standards mainly deal with four major…