Basics 2 min read
Method of Depreciation
Depreciation can be calculated using any of the following methods, however the most popular methods remain (a) Straight Line Method…
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Basics 1 min read
Accounting Entries Related to Assets and Depreciation
Let us see the accounting entries related to assets and depreciation: S.No. Particulars Journal Entries 1 Purchase of Fixed Assets…
Basics 1 min read
Why Do We Need to Account for Depreciation?
Here is why we need to provide depreciation: ● To ascertain the true profit during a year, it is desirable to…
Basics 1 min read
Financial Accounting – Depreciation
Depreciation reduces the value of assets on a residual basis. It also reduces the profits of the current year. Depreciation…
Basics 3 min read
Cash vs. Accrual Basis of Accounting
Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore, under…
Basics 1 min read
Current Liabilities
Like current assets, current liabilities are immediate liabilities of the firm that are to be paid within one year from…
Basics 1 min read
Current Assets
Assets that are convertible into cash within the next accounting year are called current assets. Cash in hand, cash in…
Basics 1 min read
Owner’s Equity
The equation of equity is as follows: Owner Equity = Assets – liability The owner or the sole proprietor of…
Basics 2 min read
Financial Statements
Financial statements are prepared to ascertain the profit or loss of the business, and to know the financial position of…
Basics 2 min read
Trial Balance
Trial balance is a summary of all the debit and credit balances of ledger accounts. The total of debit side…