Importance of Adjusting Entries
Accounting

Importance of Adjusting Entries

Adjusting entries are required for the following reasons: Some events are not journalized on a daily basis. For example, the earning of salary by the…
Why adjusting entries are needed?
Accounting

Why adjusting entries are needed?

Basically the adjusting entries ensure that revenues are recorded in the period in which they are earned and that expenses are recognized in the period…
What is Fiscal Year?
Accounting

What is Fiscal Year?

Both small and large companies prepare financial statements periodically in order to assess their financial condition and results of operations. Accounting time periods are generally…
Locating and Protecting Errors of Trial Balance
Accounting

Locating and Protecting Errors of Trial Balance

Locating and Protecting Errors of Trial Balance Errors in trial balance generally result from mathematical mistakes, incorrect posting, or simply transcribing data incorrectly. To locate,…
State the limitations of a Trial Balance
Accounting

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…
What is trial balance?
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?
Accounting

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?
Accounting

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?
Accounting

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?
Accounting

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,…
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