STUDY TO ENLIGHTEN YOURSELF
OBJECTIVES OF ACCOUNTING Accounting is a system which involves the identification of transactions and events which are financial in nature; ensuring measurement of transactions in the monetary terms; recording the transactions in the journal; classifying the entries in ledger, summarizing the entries in final accounts i.e. Trading Account and Profit and Loss Account and Balance…
Read More “OBJECTIVES OF ACCOUNTING” »
HISTORY OF ACCOUNTING The history of accounting dates back to the earliest days of human agriculture and civilization when the need to maintain accurate records of the quantities and relative values of agricultural products first arose. Simple Accounting is mentioned in the Christian Bible in the book of Mathew in the parable of the Talents….
Read More “HISTORY OF ACCOUNTING PDF” »
INSTALMENT PAYMENT SYSTEM An instalment payment system is a credit sale system in which payments are made in instalments over a period of time. In this system, the buyer gets the possession of the goods as well as the ownership of the goods right at the time of signing the agreement. During the course of…
Read More “INSTALMENT PAYMENT SYSTEM” »
STATEMENT OF AFFAIRS AND BALANCE SHEET DIFFERENCE The Statement of Affairs and Balance Sheet are different names of records of assets and liabilities maintained by the different kinds of business organisation. It is necessary to know the Statement of Affairs and Balance Sheet difference to understand their meaning and adoption. BALANCE SHEET Balance Sheet is…
Read More “STATEMENT OF AFFAIRS AND BALANCE SHEET DIFFERENCE” »
SINGLE ENTRY SYSTEM IN ACCOUNTING 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 of Accounts. The accounts are maintain as per the convenience of the users. ACCORDING TO KOHLER “A system…
Read More “SINGLE ENTRY SYSTEM IN ACCOUNTING” »
PROVISIONS MEANING Provisions meaning states the amount set aside by charging to the Profit and Loss Account, to provide for any known liability, the amount of which cannot be determined with accuracy. ACCORDING TO COMPANIES ACT 2013: “Provision usually means an amount written off or retained by the way of providing depreciation, renewals or dimunitions…
Read More “PROVISIONS MEANING” »
RESERVES ACCOUNTING It refers to the amount set aside out of profits of the business to strengthen its financial position or to meet future contingencies or losses. Reserves Accounting aims to provide the firm with sufficient finance to safeguard itself for upcoming adverse situations. Usually the firm does not distribute the whole amount of profits….
Read More “RESERVES ACCOUNTING” »
HIRE PURCHASE Hire Purchase system is a system in which the goods are delivered to the purchaser at the time of agreement before the payment of instalments. However, the title of the goods is transferred after the payment of all instalments as per the hire purchase agreement. It is a special system of purchase and…
Read More “HIRE PURCHASE ACCOUNTING NOTES PDF” »
DEPRECIATION ACCOUNTING Depreciation denotes the decrease in the book value of the fixed assets. It is the permanent and gradual decrease in the value of fixed assets. It is due to use, effluxion of time, obsolescence, expiration of legal rights or any other cause. Depreciation Accounting is done to provide the assets at true value…
Depreciation is the permanent and gradual decrease in the value of fixed asset due to use, effluxion of time, obsolescence, expiration of legal rights etc.