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Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore, under…
Like current assets, current liabilities are immediate liabilities of the firm that are to be paid within one year from…
Assets that are convertible into cash within the next accounting year are called current assets. Cash in hand, cash in…
The equation of equity is as follows: Owner Equity = Assets – liability The owner or the sole proprietor of…
Financial statements are prepared to ascertain the profit or loss of the business, and to know the financial position of…
Trial balance is a summary of all the debit and credit balances of ledger accounts. The total of debit side…
Accounting cycle refers to the specific tasks involved in completing an accounting process. The length of an accounting cycle can…
On a particular date, reconciliation of our bank balance with the balance of bank passbook is called bank reconciliation. The…
There is a difference between a purchase book and a purchase ledger. A purchase book records only credit purchases and…
Bills payable issues to the supplier of goods or services for payment, and the record is maintained in this book.…
Bills are raised by creditors to debtors. The debtors accept them and subsequently return them to the creditors. Bills accepted…
The reason of Sale return is same as for purchase return. Sometimes customers return the goods if they don’t meet…
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