What is a capital reserve? When we establish a business or set up a company, everything is planned perfectly. We need to understand all the possible expenses and income sources. These things are always discussed deeply before starting any company. It doesn’t mean that you have to sit and make assumptions for future losses and …
Capital Reserve : Difference between Capital and Revenue Reserve Read More »
What are the Limitations of Financial Accounting ? Financial accounting is primarily concerned with the recording of day-to-day company activities and is thus historical in nature. It is nothing more than a post-mortem of previous occurrences. The profit and loss account, also known as the income statement, is created from the trial balance in order …
Cheques are used as a cashless method for transactions for many years. If you compare a cheque from ancient times with a cheque of the present time, you will notice many changes. Although today, we have many apps for digital transactions still people prefer cheques when the amount of transactions is high. Here, we are …
Demand draft When receiving and transferring funds from one customer’s account to another or from one bank account to another, most Indian banks rely on a variety of negotiable documents such as cheques and bills of exchange. An example of such an instrument is the Demand Draft, which is widely used in our country’s banking …
Receipt and Payment Account The day-to-day transactions of a ‘Not for Profit’ organisation are documented in the cash book and subsequently posted to the ledger account for that organisation. At the conclusion of the financial period, the cash book and ledger account are balanced, and the Receipts and Payments Account is created based on the …
Receipt and Payment Account : Type, Format, Generally Show Read More »
There is another popular term known as Paying banker related to bank. In this article, we will know more about it. Banks were introduced to us years ago. Today we cannot imagine our life without banks. If you focus on the surveys, many people are having a bank account today. Although, there are still many …
Paying Banker : Duties and Rights of Paying Banker Read More »
In every organization, financial statements require understanding the current and previous financial status of the organization. Over some time, organizations need to know profit and loss, assets and liabilities through financial statements. It helps to understand the current financial scenario of an organization and provide solutions to deal with maintaining the organization’s stability. In any …
Financial Statement : Objectives of Financial Statement Read More »
Petty Cash Book Definition Lesser costs such as postal services, cardboard or telegraph are kept in the tiny cash book. For each kind of spending a distinct column is assigned. The difference between the total amount of debit items and the ‘total column’ is the balance of the little cash in hand. Or The book …
Petty Cash Book : Definition, Types, Format, Example Read More »
Accounting Conventions: The Difference Between Accounting Concepts And Conventions Introduction: Â Accounting conventions are a set of standards for complex and ambiguous business operations. While not mandatory or legally binding, these commonly recognised principles ensure that financial statements are consistent. These conventions take into account comparison, relevance, full disclosure of transactions, and application in financial statistics …
Accounting Conventions and Accounting Concepts – Detailed Read More »
Limitations of Accounting Standards For both internal and external stakeholders, financial statements are significant. They were essentially the corporation’s progress report. As a result, they must be controlled and don’t spread false information. And we have a structure for such legislation in the Accounting Standards (AS). Let’s look more closely. What is the definition of …
Accounting Standards : Limitations of Accounting Standards Read More »