AccountingImportance 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…
AccountingWhy 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…
AccountingWhat 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…
AccountingLocating 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,…
AccountingState 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…
AccountingWhat 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…
AccountingWhat 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…
AccountingWhat 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…
AccountingWhat 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…
AccountingWhat 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,…