Depreciation
Depreciation is a decrease in the price of an asset with the course of time, due in particular to wear and tear. All assets whose…
Accounting
Calculation of Missing Figures in Conversion Method
Calculation of Missing Figures in Conversion Method of single entry into double entry system The information which is needed for preparing the final accounts is…
Conversion Method of Single Entry into Double Entry System
Conversion Method of Single Entry into Double Entry System If it is desired to calculate the profit by preparing Trading and Profit and Loss account…
Statement of Affairs Method to calculate Profit
Statement of Affairs Method: The Statement of Affair is a review of a Company’s assets and liabilities. It states the net book value and amount…
Distinction between Statement of Affairs and Balance Sheet
A Balance Sheet is a very important part of the financial statements, but the Statement of Affairs is not a part of the financial statement.…
The meaning of GAAP
The Principles of GAAP Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial…
The basic accounting equation
The basic accounting equation forms the logical basis for double entry accounting. The equation is: Assets = Liabilities + Shareholders‘ Equity The three components of the…
FOB destination and FOB shipping
Depict in brief FOB destination and FOB shipping with example. FOB destination: FOB destination is a contraction of the term “Free on Board Destination.” The…
Closing Entry
Closing entry are journal entry made at the end of an accounting cycle to set the balance of temporary accounts to zero to begin the…
Differences between Double Entry System and Single Entry System
Differences between Double Entry System and Single Entry System Single Entry System is an incomplete, incorrect, unscientific and haphazard method of book keeping. The name…
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