Accounting Basics

Here is why we need to provide depreciation: ●      To ascertain the true profit during a…

Depreciation reduces the value of assets on a residual basis. It also reduces the profits…

Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to…

Like current assets, current liabilities are immediate liabilities of the firm that are to be…

Assets that are convertible into cash within the next accounting year are called current assets.…

The equation of equity is as follows: Owner Equity = Assets – liability The owner…

Financial statements are prepared to ascertain the profit or loss of the business, and to…

Trial balance is a summary of all the debit and credit balances of ledger accounts.…

On a particular date, reconciliation of our bank balance with the balance of bank passbook…

There is a difference between a purchase book and a purchase ledger. A purchase book…