Difference between Bin Card and Stores Ledger Bin Card Stores Ledger 1. It is a record of quantity only. 1. It is a record of both quantity and value. 2. It is maintained by the store keeper 2. It is maintained by the cost clerk. 3. It is attached to the bin 3. It is […] Read more..
Financial Statements & It’s Purpose A Financial Statement (Financial Report) is a formal record of the financial activities of a business, person, or other entity. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four […] Read more..
Accounting Versus Bookkeeping Accounting and bookkeeping are related in the same way as recipes and ingredients. Ingredients are the raw materials you need to create a meal; bookkeeping provides the raw materials you need to develop useful financial reports. A recipe takes that pile of ingredients and tells you how to transform it into that […] Read more..
Accounting versus Economics, Statistics, Mathematics, Law Accounting versus Economics, Statistics, Mathematics, Law, while comparing we can see that they have very close relations with each other subjects. In my point of view, it would be an added value for an accountant if he have knowledge about all these subjects for effective performance in his duties. […] Read more..
Trial Balance Trial balance is a listing of all the accounts and their balances. Usually, there are two columns on the trial balance, one for debits and one for credits. Trial Balance is prepared by going through the general ledger. The procedures to prepare trial balance are, list account titles in numerical order, record balances […] Read more..
Analyzing Accounting Transactions Lets analyze some of business transaction and show how these process is going through. There four steps involved in analyzing the transactions. Step 1 : Identify the transaction from the source documents Step 2 : Analyze the accounting transaction on the basis of accounting transaction. Step 3 : Record the transaction in […] Read more..
Posting The process of transferring information from the journal (debit and credit items) to the ledger is called posting. All Amounts entered in journal must be posted to the ledger accounts. Posting may be done at any time, daily or at frequent intervals. However it should be completed before the financial statements are prepared. To […] Read more..
Ledger Ledger is a book with various accounts (Assets, Liabilities, Capital, Revenue, Expenses ), each account on a separate page, that gives the details of the different transactions and its summary. After recording the transaction in the journal, the next step is the transfer of transactions in the respective accounts opened in the ledger. Meaning […] Read more..
Journal A Journal is a book where transactions are recorded in the order when they occur i.e. in chronological order. It is also called book of primary entry because all the business transactions are entered first in the journal. Format of a JV Date Column: need to mention the date of transaction. Particulars : First […] Read more..
Opening Entry Business is an ongoing process and its accounts needs to be finalized / closed yearly basis. Hence, prior to start any new financial year, all the asset and liabilities appearing in the previous year's balance sheet will have to be brought forward to the current year. This job is done by a journal […] Read more..