by kasi | Jan 8, 2011 | Accounting
Assets are shown in the balance sheet at the historical cost i.e. cost at which they were acquired. But it is not the case always that the assets presenting the values in the balance sheet are actually worth for that. There may be the case that actual value based on... by kasi | Jan 8, 2011 | Accounting
According to the matching principle of accounting expenses of the same period must be compared to or deducted from the income of that period to ascertain profitability. It is the matching principle which requires the use of accrual basis of accounting to avoid... by kasi | Jan 8, 2011 | Accounting
Bookkeeping is the recording of financial transactions such as sales, purchases, receipts, and payments. The person liable to record is named as book keeper or accounting clerk. Book keeper is not an accountant. The difference in book keeper and accountant is that a... by kasi | Jan 6, 2011 | Accounting
A statement of reconciling the balances between bank book and bank statement is called bank reconciliation statement. Bank book is maintained by the customer or account holder in his/her (usually business firm) books of accounts and bank statement is prepared by bank... by kasi | Jan 5, 2011 | Accounting
A double entry system of accounting was devised with the concept that each transaction has dual effect. Two effects of each transaction are recorded on the basis of universally accepted debit and credit rules of accountancy. Double entry system is based on subsidiary... by kasi | Jan 5, 2011 | Accounting
Cash basis of Accounting In cash basis of accounting the prevailing concept is that transactions will be entertained on the actual receipt or payment of cash. More broadly income will not be booked until it is actually received in the form of cash and expenditures...