Archive | Accounting

Endorsements are of various kinds, the most important being as follow:

Endorsement is the act of signing a cheque for the purpose of transferring it to somebody else.

Purchase Book is also known as ‘Invoice Journal’ or ‘Bought Journal’ or Purchases Journal, is used for recording credit purchases of goods meant for resale.

The features of cash book are as follows:

Cash book consists of cash and bank accounts taken out of ledger and maintained separately; thus it is a substitute of ledger for cash and bank accounts.

The difference between Journal and Ledger are as follows…

Maintaining of ledger is a must in every accounting system. It is necessary as will be clear from its advantages.

Ledger is the principal book. It is the most important book in accounting system. It contains all the accounts (assets, liabilities, capital, revenue and expenses) to which the transactions…

Journal is known as book of original/prime record. Maintaining journal gives the following advantages to the entity concerned:

The following are the characteristics of journal:

There are three type of accounts.

The basic book of accounting is called journal. Precisely it is the book of prime entry which means – Day book.

In simple words, science establishes relationship of cause and effect whereas art is the application of knowledge comprising of some accepted theories and rules.

The following are the main objectives of accounting:

The functions of accounting are as follows:

Accounting is the analysis and interpretation of book-keeping records. It includes not only the maintenance of accounting records but also the preparation of financial…