by adam kasia | Oct 2, 2010 | Principles of Accounting
Every business entity prepares a balance sheet at the end of each year, and most of the companies prepare at the end of the month. The purpose of balance sheet is to give a clear picture of financial position of a business or entity. Balance sheet consists of the... by adam kasia | Oct 2, 2010 | Principles of Accounting
Many of the people think that accounting is just understood and practiced by professional accountants and it is highly a technical field. But in reality, every person practices accounting in different forms on daily basis. Accounting is the art of measuring,... by adam kasia | Jul 13, 2010 | Principles of Accounting
Balance sheet is statement of the total assets and liabilities of an organization at a specific point in time. It is often described as snapshot of a company’s financial condition. Standard balance sheet consists of three parts i.e. Assets, Liabilities and... by adam kasia | Jul 13, 2010 | Principles of Accounting
Income statement is a financial document which shows income and expenses of an organization over a given period of time e.g. six months, one year etc. It is also known as profit and loss statement. The purpose of income statement is to know whether or not the business... by adam kasia | Jul 13, 2010 | Principles of Accounting
Trial balance is a statement of debit and credit balances extracted from the ledger, with a view to test the arithmetical accuracy of the books. One of the basic principles of double-entry is that for every debit there must be a corresponding credit. Therefore the... by adam kasia | Jul 13, 2010 | Principles of Accounting
Ledger is a book which contains separate page for each account and shows complete collection of all the accounts of a company. When the journal entries are recorded, the next step is to transfer the journal entry information from the journal to the ledger. This...