Accounting Principle

Subsidiary book is the subdivision of the Journal. In these books, the details of the transactions are recorded as they take place from day to…

Necessities of Subsidiary Books Subsidiary Books are those books of unique entry in which transactions of comparable nature are recorded at one place and in…

Subsidiary Books are those books of unique entry in which transactions of comparable nature are recorded at one place and in sequential order. In an…

Distinction between Journal and Ledger: Books of original entry (Journal) and Ledger can be distinguished as follows: Journal Book: It is the book of prime…

Procedure for Balancing an Account While balancing an account, the following steps are involved: Step 1: Total the amount column of the debit side and…

Balancing of different accounts Balancing is done once in a while, i.e., weekly, monthly, quarterly, half yearly or yearly, depending on the necessities of the…

Significance of balancing Balancing means achieving equality of debit and credit totals in an account. There are three possibilities though balancing an account throughout a…

Balancing an Account Balance is the diversity of the total debits and the total credits of an account. When posting is complete, many accounts may…

Posting the Opening Entry The opening entry is conceded to open the books of accounts for the new financial year. The debit or credit balance…

Procedure of Posting Ledger The procedure of posting is given as follows: Procedure of posting for an Account which has been debited in the journal…