Accounting
The limitations of a Trial Balance
A trial balance only enters the totals of credits against the total of debits. The fact that a trial balance tallies is only a basic…
Accounting Principle
Accounting
Financial Statement
Financial Statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity…
Accounting
Need for Providing 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
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…
Accounting
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…
Accounting
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…
Accounting
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.…
Accounting
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…
Accounting
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…
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