Accounting Principle

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

Balance Sheet is a tabular report of balances carried further after closing the books of account reserved according to principles of accounting. It is a…

Items Included in the Assets Side of Balance Sheet Fixed Assets: Those assets which are acquired and held permanently for a long time in the…

Importance of Trading Account The account which is organized to establish the gross revenue or gross loss of a business apprehension is called trading account.…

Items included in the Liabilities Side of the Balance sheet Fixed Liabilities Those liabilities which are payable to the owners only on the liquidation of…

Final accounts are a rather outdated bookkeeping term that refers to the final trial balance at the end of an accounting period from which the…

Trading Account The account which is organized to establish the gross revenue or gross loss of a business apprehension is called trading account. It is…

Closing stock means the worth of goods which are remain unsold in an exacting accounting period. It is the amount of inventory that a business…

Opening Stock: Opening stock consists of raw materials; work in improvement and finished goods depending upon the character of business. It is the worth of…

Difference between Revenue reserve and Capital reserve The reserve which is formed out of the capital earnings is known as capital reserve. It is formed…