Accounting Principle

Difference between Trial Balance and Balance Sheet Trial balance is an account which shows debit balances and credit balances of all accounts in the ledger.…

Limitations of Managerial Accounting The main objective of management accounting is to help internal management. It focuses on the present and forecasts for the future.…

Main distinctions between Financial and Management Accounting Financial Accounting The main objective of financial accounting is to measure business income and communication of business information…

Marshalling of Assets and Liabilities The term ‘Marshalling’ refers to the order in which the various assets and liabilities are shown in the balance sheet.…

Balance Sheet Equation A significant thing to note about the Balance Sheet is that the entire value of the assets is at all times equivalent…

Profit and Loss Account After calculating the gross profit or gross loss the next step is to prepare the profit and loss account. To earn…

Format of Profit and Loss Account Profit and loss accounts show your total income and expenses, and also shows whether your business has earned more…

Advantages of Trading Account The primary step of final account is trading account. It is nominal account which is prepared at the end of accounting…

Items which are included in the debit side of the trading account Trading means buying and selling. The trading account demonstrates the effect of buying…

Trading means buying and selling. The trading account demonstrates the effect of buying and selling of goods. The primary step of final account is a…