State the limitations of a Trial Balance
Trial balance is a list of accounts and their balances at a given time. The trial balance is made with the final balances of the…
Accounting
What is trial balance?
Trial balance is a list of accounts and their balances at a given time. Examples: Trial balances are of various types, such as: Initial trial…
What do you mean by Special journal?
Special journal is a journal that is used to record similar types of transactions. Special journals are of various types, such as: Sales journal, Purchase…
What is subsidiary ledger?
A subsidiary ledger is a group of accounts with a common characteristic. Subsidiary ledgers are of various types, such as: Accounts receivable subsidiary ledger, Accounts…
What is posting?
The procedure of transferring journal entries to the ledger accounts is called Posting. Importance of Posting In the recording process, posting accumulates the effect of…
What is ledger?
Definition The entire group of accounts maintained by a company is called the ledger. Ledgers are of various types, such as Subsidiary ledger, Perpetual ledger,…
What is journal?
Definition Journal is an accounting record in which transactions are initially recorded in chronological order. Journals are of various types, such as General, Adjusting, Closing,…
Describe the rules of debit and credit
Rules of Debit and Credit Debit means left side of an account, and credit means right side of an account. But rules of debit and…
What is Accounting Equation?
Accounting equation is framework that states that the economic resources of a specific entity are equal to the claims on those resources. Format: A =…
What is meant by Business Transaction?
The business transaction is the event that changes financial position of the business. A business transaction has the following features: It is measurable in terms…
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