Accounting

Definition: The procedure of revising mistakes is known as “Rectification of Errors”. These errors can be of two types. First, the errors committed on both side in an entry which does not influence the trial balance and can be rectified by making a journal entry. And another one is the errors that occur one side of trial balance and disturbs the trial balance are known as … [Read more...] about Rectification of Errors

Definition: Income Statement provides a significant outlook on business health and its profitability, it is nothing but a profit and loss statement of the company showing all the expenses and incomes incurred during the year to get the net profit/ loss, although it won’t show the whole picture of the financial health of a company. The report on the assets, liabilities and … [Read more...] about Income Statement

Definition: Double Entry System of accounting by its name describes that every transaction will once be debited and once credited. This system is followed by individuals and institutions for making entries of their day to day business transactions, whether receiving and sacrificing benefits. For instance: Mr. A makes some payment to Mr. B, in this transaction Mr. B is a … [Read more...] about Double Entry System

Definition: As stated in the Accounting Standard (AS) 26 “Intangible Assets” published by the Institute of Chartered Accountants of India (ICAI). It is an attributable non-monetary asset beyond physical affluence, retained for use in the manufacturing or production of goods and services for renting to others or for supervisory purposes. An asset is a reserve transpired by … [Read more...] about Intangible Assets

Definition: The Cash Flow Statement serves the shift of the cash by the company, i.e., accepting cash on the one side and making payments by cash on the other side. Its ambition is to determine the difference between the cash-in-hand the company has at the beginning and at the end of the year. A specified protocol of divergent stock exchanges demands corporate entities to … [Read more...] about Cash Flow Statement

Definition: Bank Reconciliation Statement is inclined to acquire the balance of the passbook through the balance of cash book or to find the balance of the cash book by taking the balance of passbook on a precise date. The lag does not commonly matter as early or afterwards, the client and bank both will make the entries. However, to understand the precise position and to … [Read more...] about Bank Reconciliation Statement

Definition: Non-profit organization are established to provide aid to society. They are entrenched to develop charity, commerce, religion, or any other fruitful objects. Their main objective is to provide services without the intention of earning profits in return, like trading organizations. Content: Non-profit organization Types of accounts Formats Features of … [Read more...] about Non-profit organization

Definition: A ledger is an organized book of all the transactions that occurred in the business related to income, expenses, assets, liabilities. The entries in it are posted from the journal entries passed; thus posting in it is treated as the second step of preparing the financial books of accounts. Content: Ledger Classification Types Importance Ledger in … [Read more...] about Ledger