Posted inBasics
Ruling of Account in Ledger Account
Let us see various formats of ledger accounts: Format-1 In the books of M/s. ABC…
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Financial Accounting – Ledger
Now let us try to understand how a journal works. With the help of journal…
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Analysis and Treatment of Transactions
Let us go through the nature of transactions and their treatment in our books of…
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Financial Accounting – Journal
“The process of recording a transaction in a journal is called journalizing the transactions.” ---Meigs…
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Accounting – Systems
There are two systems of accounting followed - ● Single Entry System ● Double Entry System Single…
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Accounting – Classification of Accounts
It is necessary to know the classification of accounts and their treatment in double entry…
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Conservation or Prudence
It is a policy of playing safe. For future events, profits are not anticipated, but…
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Convention of Materiality
If the disclosure or non-disclosure of an information might influence the decision of the users…
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Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every…
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Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions…